First Solar ‘Uniquely Positioned’ to Capitalize on IRA Benefits

By Sam Boughedda

Evercore ISI analysts raised the firm’s rating on First Solar (NASDAQ:) shares to Outperform from In Line, increasing the price target to $150 per share from $88 in a note to clients on Thursday.

The upgrade follows a meeting between Evercore ISI and “key solar industry leaders” last week from various industry verticals, including utility, residential, commercial, and industrial solar at the RE+ conference in Anaheim, CA.

“The IRA is a game changer for solar because the legislation, with its long lasting and broadly defined (and expanded) subsidies, and transferable tax credits, has provided assurances to developers and investors in solar (and other renewable) energy on a scale that has never been attempted in this country,” wrote the analysts.

Commenting on First Solar, they said that while Asia has long dominated the market, and large Chinese solar manufacturers remain a competitive threat to the company, they view the IRA as a positive catalyst to “increase domestic production and to perhaps begin to shift the consumption patterns of utility solar module supply in the U.S.”

“First solar is uniquely positioned, in our view, to benefit from both the push and pull of new supply and demand benefits afforded by the IRA,” added the analysts.