First Solar (NASDAQ:FSLR) Adds Trackers in RayTracker Acquisition - SunPower (Nasdaq:SPRWA) Threatened

First Solar's (NASDAQ:FSLR) acquisition of RayTracker adds another arrow in the quiver of the company, and puts direct pressure on SunPower (Nasdaq:SPRWA), whom they compete with.

Auriga says, "In football terms, First Solar just pulled a reverse. For years we have argued that adding trackers to First Solar's system would result in an increase to the price of electricity (LCOE), given that the price of the tracker ($) more than offsets the increased production (kWh). With the announced acquisition of RayTracker (private), we believe FSLR has now found a suitable solution such that utility scale projects using CdTe thin film modules can now benefit from the use of trackers. In short, we believe that First Solar will be enhancing its product strategy by offering both fixed tilt and tracking systems. In terms of competition, we see this move as another threat to SunPower (Nasdaq:SPRWA)(Hold), which competes directly with First Solar for utility scale solar projects."

Auriga maintains a "Buy" rating on First Solar, which closed Friday at $133.58, down $0.95, or 0.71 percent. Auriga has a price target of $167 on First Solar.