Wells Fargo has upgraded First Solar's stock rating to overweight and raised its price target from $255 to $320, indicating a potential upside of 42% from its recent closing price. Analyst Praneeth Satish highlighted that the ongoing Section 232 investigation by the U.S.
Department of Commerce into polysilicon imports could lead to a favorable ruling, allowing broader access to this essential material. Currently, polysilicon imports face heavy tariffs, but if the investigation concludes that these imports do not threaten national security, it could significantly enhance First Solar's market position and pricing power.
The bank's analysis aligns with broader market sentiment, as 25 out of 42 analysts covering First Solar have a buy or strong buy rating. Despite a 14% decline in First Solar's shares year-to-date, the potential policy shift could provide a major boost to the company's financial outlook and stock performance