First Solar offers strong risk-adjusted earnings profile

  • Morgan Stanley upgrades First Solar’s stock to buy
  • First Solar offers one of the strongest risk-adjusted earnings profiles
  • First Solar enjoys a ‘near-term competitive moat’ as a vertically integrated U.S.-based solar-panel maker
  • Shares of First Solar were a rare spot of green among alternative-energy stocks on Friday

First Solar Inc. has been upgraded to a buy rating by Morgan Stanley, who believe the stock offers one of the strongest risk-adjusted earnings profiles. Despite a 20% selloff in the last three months, First Solar is resilient enough to withstand the headwinds hitting alternative-energy stocks. The company enjoys a ‘near-term competitive moat’ as a vertically integrated U.S.-based solar-panel maker and has been a major beneficiary of recent policy changes in the U.S. The stock is down nearly 4% this year, but shows strong upside potential with a price target of $237 a share, an upside of over 60%.

Public Companies: First Solar Inc. (FSLR)
Private Companies:
Key People: Andrew Percoco (Analyst)

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Factuality Level: 7
Justification: The article provides information from analysts at Morgan Stanley who upgraded First Solar’s stock and raised their price target. It also mentions the challenges faced by clean-energy stocks and the advantages that First Solar has as a U.S.-based solar-panel maker. However, the article lacks specific data or evidence to support the claims made by the analysts, and it does not provide a balanced view by including any potential risks or counterarguments.

Noise Level: 3
Justification: The article provides relevant information about First Solar Inc. and its resilience in the alternative-energy market. It mentions the stock’s recent selloff, the upgrade by Morgan Stanley, and the company’s competitive advantages. However, the article lacks scientific rigor, evidence, and actionable insights. It also briefly mentions the performance of other alternative-energy stocks without providing further analysis or context.

Financial Relevance: Yes
Financial Markets Impacted: Alternative-energy stocks

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the financial performance and outlook of First Solar Inc., a solar-panel maker. It mentions the recent selloff in alternative-energy stocks and the impact of policy changes in California on solar stocks. However, there is no mention of any extreme event or its impact.

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