(This is CNBC Pro’s live coverage of Friday’s analyst calls and Wall Street chatter. Please refresh every 20-30 minutes to view the latest posts.) A major call on a popular solar stock was in focus Friday. Morgan Stanley upgraded First Solar to overweight from equal weight, with its new price target signaling more than 60% upside. Separately, the bank raised its rating on chipmaker Qorvo. Shares of both companies were up before the bell. Check out the latest calls and chatter below. 5:43 a.m. ET: Morgan Stanley upgrades Qorvo on expected margin recovery, uptick in volume Chipmaker Qorvo will benefit from the transition to 5G as well as demand growth in China that will help broaden gross margins, according to Morgan Stanley. The bank upgraded shares of the semiconductor company to overweight from equal weight and raised its price target to $134 per share from $120. Morgan Stanley’s forecast implies about 34% upside from Thursday’s $100.32 close. The stock has ticked up about 11% this year. It also traded 1.3% higher in the premarket. QRVO YTD mountain QRVO in 2023 “Qorvo has the most attractive catalysts out of our smartphone names,” analyst Joseph Moore said. “The momentum from a China Android snapback and content gains from 5G transition should drive revenue growth and expand gross margins.” Morgan Stanley also downgraded chipmaker Qualcomm to equal weight, with Moore noting that the company’s “strong execution in the last 2-3 years has resulted in stronger-than-normal market share and pricing” and “creates a tough bar going forward.” — Brian Evans 5:43 a.m. ET: Morgan Stanley upgrades First Solar Morgan Stanley analyst Andrew Percoco raised its rating on First Solar to overweight from equal weight. He also increased his price target to $237 per share from $214. The new forecast implies upside of 64%. The analyst pointed to four drivers that can send the stock, along with the rest of the sector, sharply higher in the new year: Declining interest rates “Deflation of core clean energy technologies,” which can “help offset elevated interest rates.” “Election cycle considerations for clean energy (2H24 consideration): While still early, we don’t see [Inflation Reduction Act] repeal as likely. However, anti-IRA rhetoric on the campaign trail could add uncertainty and affect clean tech valuations.” Earnings growth “We believe First Solar offers one of the strongest risk-adjusted earnings profile with its sold out position through 2026, which when combined with its cost hedging should result in 17 pct pts of relatively low-risk margin expansion through 2026, before accounting for IRA benefits,” Percoco said. Solar stocks have gotten battered in 2023, and First Solar is no different. First Solar shares are down 3.8% year to date. While that performance lags the S & P 500’s 19% gain, it outpaces the broader solar space. The Invesco Solar ETF (TAN) has fallen 36% in that time. The stock traded more than 3% higher on the back of the upgrade. — Fred Imbert
