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.
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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