First Solar Shares Are On Fire: Analysts Weigh In

Shares of First Solar Inc FSLR have soared over 25% this week after investors learned the company’s earnings were boosted by tax credits and other incentives from the Inflation Reduction Act President Joe Biden signed last August.

By The Numbers: First Solar reported fourth-quarter revenues of $1 billion Feb. 28, which beat consensus estimates of $989.28 million, according to Benzinga Pro. The increase was primarily a result of increased module sales and the sale of the company's Luz del Norte project in Chile. Read more...

The company reported a quarterly loss of 7 cents per share, which beat estimates for a loss of 15 cents per share.

First Solar sees full-year 2023 revenue in a range of $3.4 billion to $3.6 billion versus estimates of $3.34 billion.

The UBS Analyst: Jon Windham upgraded First Solar from Neutral to Buy and raised the price target from $140 to $250.

First Solar will benefit significantly from the Inflation Reduction Act (IRA) as it ramps up domestic manufacturing in 2023, the analyst said. UBS sees the value of domestic manufacturing tax credits at around $76 per share, almost 40% of the current stock price — a serious tailwind for the company.

First Solar’s production volumes are expected to double by 2027, and it is expected to see high visibility on capacity, revenue, and earnings growth through 2026, Windham said, and is well-positioned to benefit from high demand for its domestic capacity.

• The Goldman Sachs Analyst: Brian Kinstlinger upgraded First Solar from Neutral to Buy and raised the price target from $231 to $260.
• Baird analyst Ben Kallo maintained an Outperform rating on the stock and raised the price target from $180 to $208.

FSLR Price Action: Shares of First Solar are trading 5.8% higher Friday to $209.73, according to data from Benzinga Pro.

Read next: If You Invested $1,000 In Tesla When Joe Biden Was Elected President, Here's How Much You'd Have Now

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