Shares of First Solar Inc (NASDAQ:FSLR) are 0.7% higher to trade at $234.73, after landing an upgrade at Deutsche Bank to "buy" from "neutral" and price-target hike to $272 from $245. The brokerage cited trade policy shifts and valuation as two catalysts for the move.
FSLR has pulled back since its June 3 record high of $320.95, down 10% year to date. The $220 region has stepped up as support since mid-May, while the 260-day moving average captured Monday's pullback to this area.
The firm is joining the bullish majority, with 27 of the 42 analysts in coverage sporting a "buy" or "strong buy" recommendation. The average 12-month price target comes in at $251.96, a 7.7% premium to current trading levels.
Bulls have been circling FSLR, per its 50-day call/put volume ratio of 2.19 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks in the 80th percentile of its annual range, indicating a higher-than-usual preference for bullish bets of late.
However, over the past 10 days of trading the weekly 6/26 240-strike put and weekly 7/10 230-strike put saw the most attention. Both positions held plenty of buying activity, while the weekly 6/26 290-strike call also made some noise.
Meanwhile, short interest represents 8.4% of the stock's available float. It would take shorts over three days to buy back their bearish bets.
