US Tariffs Boost First Solar: Analyst Sees 52% Upside

First Solar stock has received an upgrade to a "buy" rating from Truist Securities, with an increased price target of $270 per share, suggesting a potential 52% rise from its previous closing price. This upgrade is driven by expectations of a more favorable market for solar panel pricing extending into the 2030s and a recent adjustment in the stock's valuation. Analyst Christopher Souther cited a stronger demand backdrop, bolstered by anti-stockpiling measures within a Section 232 ruling and Truist's updated U.S. utility-scale solar forecast.

Despite First Solar experiencing a roughly 32% year-to-date decline due to macroeconomic pressures and rising tariffs, the U.S. government's forthcoming temporary restrictions on polysilicon imports, effective December 4, are anticipated to provide a significant uplift. Polysilicon is a critical raw material for approximately 95% of solar panels. Souther noted that while First Solar's near-term pricing is secured by its sold-out Series 7 capacity through 2028, new bookings for the end of the decade are likely to see upward price adjustments.

The temporary U.S. ruling preventing foreign suppliers from stockpiling with importers also addresses near-term demand concerns. This strategic positioning is expected to enable First Solar to secure international capacity contracts for the U.S. market at higher prices, presenting substantial upside opportunities primarily from 2027 onwards. This optimistic outlook aligns with the broader market consensus, as a majority of analysts covering First Solar maintain a "buy" or "strong buy" rating.