Here’s Why First Solar Could Push Higher

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Solar stocks, like First Solar (FSLR) are on fire.

All thanks to a couple of upgrades.

For one, Goldman Sachs recently noted the Inflation Reduction Act (IRA) is one of the “most meaningful policy developments for the US solar and energy storage sector and clears the way for at least a decade-long runway for stable installation growth across all residential, commercial and utility-scale markets.”

With that, Goldman Sachs believes solar stocks like Enphase Energy (ENPH), First Solar, and Array Technologies (ARRY) could see at least 50% upside.

Even better for First Solar, Wells Fargo analysts just upgraded the stock to an overweight rating—also thanks to the IRA and stronger demand in Europe.

“While continued (Federal Reserve) tightening in early 2023 will likely act as a near-term headwind, the fundamental and regulatory backdrop is much improved in 2023 and beyond,” said Wells Fargo, as quoted by Barron’s. “The passage of IRA should drive accelerated adoption of solar and hydrogen in the U.S. for the next decade.”

With that news, shares of FSLR ran from about $142 to $169.77 over the last few days.  Today alone, FSLR is up $10.60 a share.