First Solar Stock Surges as Analyst Predicts Gains From Climate Bill
Guggenheim analyst Joseph Osha raised his rating on First Solar to Buy from Neutral.
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First Solar FSLR +7.44% shares jumped on Monday after an analyst from Guggenheim said that the solar-panel manufacturer will greatly benefit from the provisions of the Inflation Reduction Act.
Clean-energy producers should be some of the bill’s biggest beneficiaries. Multiple clean-energy stocks
, including
SunRun (RUN) and
First Solar (FSLR), were climbing on Monday.
The measure now heads to the House, where it is expected to be approved.
Joseph Osha from Guggenheim raised his rating on First Solar to Buy from Neutral and set a target of $135 for the price. Osha wrote on Monday that “although there is still some potential uncertainly as to the legislation’s fate in the House, the odds of passage have improved considerably, in our judgment.”
Osha said his target for First Solar stock is among the highest on Wall Street. “and despite the stock’s recent appreciation, we also believe that investors have not fully digested how transformational the IRA [Inflation Reduction Act] could be for First Solar’s business.”
Among the positives for the company are a provision extending a 30% federal tax credit available to homeowners and developers of wind and solar projects, Osha said. “This benefits First Solar’s customers more than First Solar itself but still should drive market growth,” he wrote.
Of the 19 analysts surveyed by FactSet who track First Solar stock, nine rate it at Buy, while eight say it is a Hold. Two rate the stock at Sell.
Shares of First Solar were 7.7% higher Monday to $109.65. The stock was on pace for its highest close since November 2021 on Monday and has climbed 26% in 2022.