On 19 May, Goldman Sachs’ analyst – Brian Lee – upgraded First Solar, Inc. (NASDAQ:FSLR) price target from $204 to $255, keeping a ‘Buy’ rating on the stock.
Brian Lee, the firm’s analyst, stated that the revised 12-month price target prices a higher P/E multiple applied to their EPS forecasts over the next four quarters. This increase accounts for First Solar’s potential to outperform, primarily due to supportive trade policies and tariff relief. The estimate also includes around $3 per share in net cash.
A photovoltaic field at dawn, its solar panels shimmering in the light of a new day.
The analyst said that the primary risk factors for First Solar, Inc. (NASDAQ:FSLR) are the possibility of module oversupply and higher-than-expected module costs, trade policy, and manufacturing credits.
First Solar (NASDAQ: FSLR) jumped almost 20% on May 13, thanks to a report that House GOP lawmakers have cooked up a hefty tax and spending plan. The key was the softening of the blow on credit cuts for solar and wind — not as brutal as expected.
J.P. Morgan says the leaked parts of the reconciliation bill look pretty bullish for solar, wind, and geothermal players. They’ve trimmed down the definitions of production and investment tax credits, but they’re sticking around till 2028 — and only then do they start fading out, gradually, till 2032.
Analyst Mark Strouse called the whole thing a “significant positive” for First Solar because these 45X credits are expected to make up around 60% of the company’s earnings over the next two years. Plus, the new restrictions on foreign competitors give First Solar a leg up. The stock is already up 34.6% over the last 30 days.
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