Investors may want to keep an eye on First Solar (FSLR).
At the moment, it’s one of the only stocks not getting hammered on the day. Up about 65 cents on a volume spike to 5.4 million shares, as compared to daily average volume of 2.17 million shares, the stock could see brighter days ahead.
For one, there’s the $370 billion clean energy bill. Two, Bank of America still believes the market is not full-appreciating First Solar with regards to the solar bill.
In fact, as noted by TheFly.com: BofA analyst Julien Dumoulin-Smith upgraded First Solar to Buy from Neutral with a price target of $141, up from $104.50. When he last refreshed his view on First Solar days after the initial Inflation Reduction Act, or IRA, announcement, he did not yet appreciate the magnitude of IRA credits that will accrue to the company,
Three, First Solar just announced it would spend $1.2 billion on U.S. solar panel manufacturing capacity to “capitalize on the influx of capital and government funds designated for clean energy,” as noted by Barron’s. “With the new addition, First Solar projects to have more than 10 gigawatts of panel-producing capacity by 2025 as demand for solar panels increases.”
Four, analysts say the latest U.S. climate bill could add $3 billion to First Solar’s balance sheet over the next four years. With that, FSLR shares could see higher highs.
