First Solar, Inc. (NASDAQ:FSLR) is “uniquely positioned” to benefit from the passage of the Inflation Reduction Act (IRA), according to Evercore ISI.
The First Solar Analyst: Sean Morgan upgraded First Solar from In-Line to Outperform while raising the price target from $88 to $150.
The First Solar Takeaways: Among the most immediate effects of the IRA is on U.S. domestic solar panel manufacturing, Morgan said in the upgrade note.
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“Asia has long dominated the market, and while the large Chinese solar manufacturers remain a competitive threat to First Solar, we view the IRA as a positive catalyst for FSLR to increase domestic production and to perhaps begin to shift the consumption patterns of utility solar module supply in the U.S.,” the analyst said.
“On the supply side, we expect FSLR could generate ~$0.17/watt of solar PTC benefits, while the utility scale solar market, with its adders for domestic supply and cost offsets to new generation capacity will also be a boon for the lone U.S. domiciled major solar panel manufacturer,” he added.
FSLR Price Action: Shares of First Solar were trading 2.91% lower at $132.22 Thursday morning.
