FSLR – Although management sentiment suggests the potential for near-term headwinds, market expectations are still too bearish, suggesting longer-term upside remains warranted

• • First Solar, Inc. (FSLR:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Assets, with a 1.0x UAFRS-based P/B, implying muted expectations for the firm. While management’s negative sentiment suggests the potential for near-term headwinds, suppressed valuations and potential market tailwinds suggest longer-term upside remains warranted
  • Specifically, management’s concerns about growth, bookings, and module prices imply near-term equity upside may be limited. However, given long-term industry tailwinds, and the firm’s leadership position in its space, it is likely they can outperform bearish market expectations in the long-term, and in that scenario, material equity upside would be warranted