First Solar also engages in manufacturing PV solar thin film semiconductor module technology. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners.
The Goldman Sachs report noted this about potential catalysts:
We also look for more clarity around the timing of an Analyst Day, which we expect to provide a multi-year framework for growth/tech/earnings and serve as a catalyst; an announcement around new manufacturing capacity in the US (likely in AL or the Southwest US, in our view) is also a potential upside catalyst moving through the next quarter or two.
Goldman Sachs has set its target price at $260, well above the $217.49 consensus target. First Solar stock closed on Wednesday at $218.19.
SolarEdge Technologies
This top solar company not only could beat earnings expectations for the quarter, but it is on the Goldman Sachs Conviction List of top stock ideas. SolarEdge Technologies Inc. (NASDAQ: SEDG) designs, develops and sells direct current (DC) optimized inverter systems for solar PV installations worldwide.
The company offers inverters, power optimizers, communication devices and smart energy management solutions used in residential, commercial and small utility-scale solar installations. Its cloud-based monitoring platform collects and processes information from the power optimizers and inverters, as well as monitors and manages the solar PV system.
SolarEdge also provides residential, commercial and large-scale PV energy storage and backup, electric vehicle charging, and home energy management solutions, as well as grid services; e-Mobility, automation machines, and lithium-ion cells and batteries, and virtual power plants.
In addition, the company offers pre-sales support, ongoing training and technical support and after-installation services. The company sells its products to the providers of solar PV systems and to solar installers and distributors, electrical equipment wholesalers and PV module manufacturers, as well as engineering, procurement and construction firms.
The analyst noted this about the possibility for a beat and raise for the quarter:
We believe SolarEdge is set up for another beat and raise on the back of continued volume strength in Europe, where the company is also benefiting from a margin rebound on the back of better pricing and euro FX trends. At the same time, the US business appears to be more stable in the beginning of the year given ongoing demand pull-forward in California, though this is less of a tailwind to the company versus peers given its diversified geographic sales mix.
SolarEdge Technologies has a $420 Goldman Sachs price target. The consensus target is $368.74, and Wednesday’s close was at $314.36.
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