Susquehanna initiated coverage with a "neutral" rating today
The shares of First Solar, Inc. (NASDAQ:FSLR) are down 5.3% to trade at $79.29 at last check, falling from yesterday's fresh nine-year high of $85.66. The stock got a boost from J.P. Morgan Securities yesterday, after the analyst lifted its price target to $87 from $80. Today's initiated coverage wasn't enough to keep momentum going, however, with Susquehanna starting with a "neutral" rating and $90 price target.
Up 43.9% year-to-date, the equity is still on track for its fourth-straight week in the black. Today's pullback could have already been in the cards, too, as First Solar stock sports a 14-day Relative Strength Index (RSI) of 72 coming into today, which sits in "overbought" territory.
Analysts are leaning bullish on FLSR, with seven of the 11 analysts in coverage rating it a "buy" or better prior to today. Meanwhile, the 12-month consensus price target of $69.81 is a 13.7% discount to current levels. Should analysts follow J.P. Morgan's lead and up their price targets, it could put some wind at the equity's back.
There is plenty of short interest that could unwind as well. Though shorts have started to jump ship in the last month, the 9.41 million shares sold short still account for 11.2% of the stock's available float. In other words, it would take nearly five days to cover at FSLR's average pace of trading.