What's Going On With First Solar Shares Thursday?

First Solar, Inc. FSLR shares are moving higher on Thursday after Seaport Research analyst Tom Curran upgraded the stock from Neutral to Buy and set a $274 price target.

Curran named First Solar his top pick in the solar energy and storage sector, saying the company is best fit to “endure the sector’s dual macro headwinds.”

The first headwind is the change in climate policy, which is expected to shift from being generally supportive to more restrictive. Specifically, Curran detailed uncertainty regarding how President-elect Donald Trump‘s statements will “translate into reality” under the incoming Republican-led government.

Curran however noted that some of the policy changes instituted by the incoming Trump administration could be positive for the sector, such as potential reductions in bureaucratic hurdles, allowing companies to accelerate project development.

Trump previously suggested imposing 25% tariffs on all imports from Canada and Mexico, along with an additional 10% tariff on imports from China. If this were to become a reality, Curran believes First Solar is well-positioned to handle it, as the company already manufactures key materials in the United States with facilities in Ohio and Alabama.

The analyst emphasized that, “on the thin film side of the U.S. large-scale solar module market, FSLR is king with a manufacturing operation that is fully vertically integrated, set to more than double in capacity just three years (from 6GW in 2023 to 14GW in 2026), and heavily covered by a high-integrity order backlog.”

The second headwind that Curran identified is “higher for even longer” interest rates, as the Federal Reserve has slowed its plans for future rate cuts due to persistent inflation data.

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FSLR Price Action: At the time of writing, First Solar stock is trading 3.99% higher at $194.28, according to data from Benzinga Pro.

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