Truist Securities has upgraded First Solar (FSLR) from hold to buy, increasing its price target from $229 to $270, which suggests a potential upside of approximately 52% from the stock's recent closing price. Analyst Christopher Souther attributes this upgrade to a favorable pricing environment expected into the 2030s and a recent valuation reset.
The U.S. is set to impose temporary restrictions on polysilicon imports under Section 232, effective December 4, which could enhance First Solar's market position as polysilicon is a key material for solar panel production.
Despite a 32% decline in FSLR's stock price year-to-date due to macroeconomic challenges, including rising tariffs, the new ruling is expected to mitigate stockpiling issues and strengthen demand. Souther notes that First Solar's order book is solid, with its U.S.
Series 7 capacity sold out through 2028, and anticipates that new bookings for the end of the decade will likely see upward pricing adjustments. The consensus among analysts is positive, with 29 out of 41 recommending a buy or strong buy rating for First Solar, indicating strong market confidence in the company's recovery and growth potential