First Solar upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research analyst Steve Fleishman upgraded First Solar (FSLR) to Outperform from Peer Perform with a $221 price target The firm cites better clarity on 45X credits for the first time since election year politics started in early 2024 for the upgrade. While the proposed rules shorten the 45X runway by a year, First Solar stands to earn $10B from 45X, or $92 per share, the analyst tells investors in a research note. Wolfe believes the company’s “domestic moat remains well intact” as the only domestic solar module manufacturer of scale. It points out First Solar doesn’t rely on foreign components such as cells or wafers. The House Ways & Means bill’s proposed Foreign Entity of Concern restrictions are relatively strict and another good signal that it will be tough for Chinese manufacturers to compete in the U.S., further strengthening First Solar’ competitive positioning, Wolfe adds.