March 15, 2019

Valens Research Weekly Equity Idea Highlight for March 13, 2019 – First Solar, Inc

FSLR is starting to see light at the end of the Series 6 tunnel, but the market is not yet recognizing management’s growing optimism for their outlook, spelling material upside potential

Market expectations for FSLR are currently very pessimistic. The market is expecting UAFRS-based (Uniform) ROA (ROA’) to fade from 78% in 2018 to 31% in 2023, with Uniform Asset growth slowing to 10% a year going forward. The market appears to be concerned about their legacy GPO business and competition there, while the company has been focused on building other businesses around their GPO business, to defend that moat and expand to higher value add services.

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