First Solar (FSLR) refuses to cool off.
Over the last month, the solar stock ran from about $120 to $164.87, as of today. From here, it could see higher highs. All after the company selected Alabama for its fourth new U.S. panel factory, where it will spend $1.1 billion to build the site, and get it up and producing by 2025.
According to CNBC: “The new facility will produce 3.5 gigawatts of solar modules annually by 2025. The company said the site will create more than 700 new jobs. All told, First Solar plans to manufacture more than 10 gigawatts of solar modules by 2025. The company’s other three facilities – one of which is slated to come online during the first half of 2023 – are in Ohio. With the latest Alabama factory announcement, First Solar said it’s invested more than $4 billion in U.S. manufacturing.”
Helping, Bank of America reiterated a buy rating on the stock, with a price target of $165. While the company recently missed on earnings and revenue, the firm believes First Solar’s prospects are among the best in the solar sector. They also believe the stock will benefit from the Inflation Reduction Act and a global push for greener energy.
Then, Guggenheim analyst raised their price target on FSLR from $200 to $233, with a buy rating. All after the solar company reported “very strong” booking activities, said analysts.
Barclays also upgraded the FSLR stock to equal weight from underweight, with a price target of $162. As noted by TheFly.com, Barclays said, “Demand for domestically-manufactured products supports First Solar’s pricing power while its almost sold-out status through 2026 “kicks the concern about potential ASP deterioration down the road.”