First Solar (FSLR) received a price-target increase Wednesday, thanks to tax credits and other incentives from the Inflation Reduction Act that boosted the solar energy supplier’s earnings. FSLR stock soared on the news.
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Oppenheimer analyst Colin Rusch raised his price target on First Solar stock 38%, to 216, from 156. Also, Rusch reiterated his rating of outperform.
“We are encouraged to see the company continuing to push prices higher while extending duration of contracts,” Rusch wrote in a note to clients. “We believe the company is largely sold out into 2026 and is filling its backlog into 2028.”
FSLR stock soared 14% to 192.90, during afternoon action on the stock market today, hitting a record high.
First Solar has been a major beneficiary of the Inflation Reduction Act, signed into law by President Joe Biden in August. It provides $369 billion for expansion of renewable energy and stands as the largest U.S. green-energy law ever.
FSLR Stock Boosted By Quarterly Results
The legislation is among the reasons First Solar beat estimates when it reported fourth-quarter results late Tuesday. Helped by a record backlog of orders and a strong balance sheet, the company also raised its outlook above Wall Street estimates.
First Solar reported revenue of $1 billion, just slightly above estimates. Also, earnings came in at an adjusted loss of 7 cents a share, vs. estimates for a 17-cent loss.
This year, First Solar expects revenue of $3.5 billion at the midpoint, above estimates of $3.36 billion. Further, it sees adjusted earnings at $7 to $8 a share, ahead of analyst forecasts for $5.22.
First Solar specializes in manufacturing thin-film solar panels designed for high-efficiency. Companies use them mainly in utility-scale solar operations and some commercial installations.
FSLR stock owns a Relative Strength rating of 98 out of 99. In addition, shares trade above the 50-day line.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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