FSLR share: First solar leaps during the upgrade
first sun (FSLR) received a price target increase on Wednesday thanks to tax credits and other stimulus under the Inflation Control Act that boosted the solar energy company’s profits. FSLR stock surged on the news.
Oppenheimer analyst Colin Rusch raised his price target on First Solar stock by 38% to 216 from 156. Rusch also reiterated his view of outperformance.
“We are encouraged to see the company continue to increase prices while extending contract lengths,” Rusch wrote in a note to customers. “We believe the company will be largely sold out by 2026 and will fill its backlog by 2028.”
FSLR shares rose 14% to 192.90 during this afternoon’s trading session, hitting a record high.
First Solar was a key beneficiary of the Inflation Reduction Act signed into law by President Joe Biden in August. It provides $369 billion for renewable energy expansion and is considered the largest US green energy law of all time.
FSLR stock strengthened by quarterly results
The legislation is one of the reasons First Solar beat estimates when it released fourth-quarter results late Tuesday. The company also raised its outlook above Wall Street estimates, helped by a record order backlog and a strong balance sheet.
First Solar reported revenue of $1 billion, just slightly ahead of estimates. Also, earnings came in at an adjusted loss of 7 cents a share versus estimates of a 17 cent loss.
This year, First Solar expects sales of $3.5 billion at the midpoint, up from estimates of $3.36 billion. Additionally, it sees adjusted earnings of $7 to $8 per share ahead of analysts’ guidance of $5.22.
First Solar specializes in the manufacture of high-efficiency thin-film solar modules. Companies use them primarily in utility scale solar operations and some commercial installations.
FSLR stock has a relative strength rating of 98 out of 99. In addition, shares are trading above the 50-day moving average.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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https://www.investors.com/news/technology/first-solar-stock-hits-record-high-gets-a-price-target-increase-in-hot-solar-market/?src=A00220&yptr=yahoo FSLR share: First solar leaps during the upgrade