Wolfe Research analyst Steve Fleishman upgraded the rating on First Solar (FSLR – Research Report) to a Buy yesterday, setting a price target of $221.00.
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Steve Fleishman has given his Buy rating due to a combination of factors that suggest a positive outlook for First Solar. One of the main reasons is the improved clarity regarding the 45X tax credits, which are now expected to provide the company with approximately $10 billion in credits through 2031. This change alleviates previous concerns about the potential risks associated with the Inflation Reduction Act (IRA) and the House Ways & Means Committee’s decisions.
Additionally, First Solar’s position as the only large-scale domestic solar module manufacturer gives it a competitive edge, especially since it does not depend on foreign components like cells or wafers. The proposed Foreign Entity of Concern (FEOC) restrictions further bolster First Solar’s market position by making it more challenging for Chinese manufacturers to compete in the U.S. market. These factors, combined with the company’s strong balance sheet and the limited impact of the transferability of 45X credits, support Fleishman’s optimistic outlook and the upgrade to an Outperform rating.
In another report released on May 1, Guggenheim also maintained a Buy rating on the stock with a $202.00 price target.
FSLR’s price has also changed moderately for the past six months – from $182.260 to $156.210, which is a -14.29% drop .