This struggling solar stock has lost one-third of its value this year. Truist sees a comeback
Demand for solar panels will pick up and give First Solar a big lift, according to Truist Securities. The bank upgraded the solar stock to buy from hold. It also raised its price target on shares to $270 from $229, implying about 52% upside from Friday’s close. “We upgrade FSLR to BUY from HOLD with a $270 PT based on a stronger backdrop for pricing into the 2030s and recent valuation reset,” analyst Christopher Souther said in a note to clients. “In conjunction with our US Utility-scale Solar forecast (average 44 GWdc in 2027-35E), and the recent anti-stockpiling measure added to the Section 232 ruling, we see a stronger backdrop for demand. First Solar has fallen roughly 32% year to date as macroeconomic headwinds such as rising tariffs have pressured the stock. FSLR YTD mountain First Solar has fallen about 32% year to date. However, the U.S. will impose temporary restrictions on imports of polysilicon and their derivatives under Section 232, effective Dec. 4, potentially giving First Solar a boost, per Truist. Polysilicon is a raw material used to make about 95% of solar panels, according to the U.S. Department of Labor. “FSLR’s order book has largely set near term pricing, as U.S. Series 7 capacity is sold out though 2028, but new bookings for the end of the decade likely have upward bias from Our [pre-Section 232] mid-$0.30/W range prior expectations,” Souther wrote. In the meantime, a temporary U.S. ruling that prevents foreign suppliers from stockpiling with importers “also heads off the stockpiling question for near-term demand,” per the analyst. “This positions FSLR well for opportunities to further contract international … capacity into the U.S. market at higher prices, providing upside opportunities largely in 2027+,” he wrote. Truist’s call falls in line with consensus on the Street. Of the 41 analysts covering First Solar, 29 have a buy or strong buy rating on the stock, LSEG data shows.
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