First Solar, Inc.

(NASDAQ Global Select)
Back to all articles
Bullish +65

First Solar Climbs 4% as Truist Buy Call and December Tariff Floor Reset Panel Pricing Outlook; Enphase Energy and Sunrun Hold Flat

Analyst upgrade Tariffs AI-generated analysis

πŸ“ˆ First Solar stock climbed 4% to $186.21 after Truist upgraded the rating to Buy with a $270 target price.

πŸ›οΈ A Section 232 trade decision sets a 44-cent/watt floor on foreign crystalline silicon modules starting in December.

πŸ’° Truist analyst Christopher Souther raised estimates for decade-end U.S. module average selling prices and revenue forecasts.

⚑ First Solar's thin-film cadmium telluride technology provides independence from Chinese crystalline silicon supply chains.

πŸ“‰ The company trades at a forward P/E ratio of 8x, supporting the cited valuation reset by analysts.

πŸ—“οΈ First Solar's U.S. Series 7 capacity is sold out through 2028, with tariff benefits expected to impact later bookings.

⚠️ Skeptics argue that near-term pricing is locked in, meaning the full tariff benefit may not show up immediately in results.

Bullish Signals
  • Truist Securities upgraded First Solar to Buy from Hold with a $270 price target, citing a stronger pricing backdrop and valuation reset.
  • The Section 232 tariff floor of 44 cents/watt on imported panels directly protects First Solar's pricing power against foreign crystalline silicon rivals.
  • Analyst Christopher Souther lifted estimates for U.S. module average selling prices at the end of the decade along with revenue and EBITDA forecasts.
  • First Solar's domestic fleet has little open capacity, strengthening its hand when negotiating bookings for later years under multi-year contracts.
Risk Factors
  • The tariff benefit is delayed because the company's backlog has largely set near-term pricing, with benefits expected to appear in end-of-decade bookings.
  • Investors may need to adjust holdings given the delay between the tariff policy implementation and the revenue impact on reported results.
Full Analysis
First Solar (FSLR) shares rose 4% to $186.21 following a Truist Securities upgrade to Buy with a $270 price target and the implementation of a Section 232 tariff floor on imported crystalline silicon modules. The Department of Commerce established a minimum import price plus tariffs of 44 cents per watt effective in early December, alongside rules restricting foreign suppliers from stocking inventory ahead of that date. Truist analyst Christopher Souther upgraded the stock citing a stronger pricing backdrop extending into the 2030s and a valuation reset. He raised his estimates for U.S. module average selling prices at the end of the decade, along with revenue and EBITDA forecasts, arguing First Solar's thin-film cadmium telluride technology maintains competitiveness against domestic crystalline silicon manufacturing on a lower cost base. While the tariff policy directly benefits First Solar by protecting its pricing power against foreign rivals, analysts note that the company's backlog has largely set near-term pricing. Consequently, the full financial benefit of the import floor is expected to materialize in bookings for the end of the decade rather than immediately impacting current results, creating a potential delay between the policy announcement and revenue recognition.