It’s not often a stock runs more than 40% in 5 sessions without a takeover bid, however, First Solar (FSLR) has done just that and ripped to new all-time highs as the market started to appreciate (& price) what we had been seeing for a while. Last week we wrote: First Solar is growing strongly, yet on FY24 consensus earnings, it’s on a PE of 15.6x which drops to 10.5x in FY25 and 7x in FY26. A lot can happen between now and then, however, we think this is the most attractively priced growth company in our universe, with incredible tailwinds in the coming years.
In a week, those multiples have expanded to 20x Est PE for FY24, 14x Est PE for FY25 & 9x Est PE for FY26, however, it still screens inexpensive for the growth, and the tailwinds gathering behind this business.
- We were surprised by the aggressive nature of the re-rate in such short order, but ultimately, we believe it’s warranted.
MM remains bullish & long FSLR US
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