First Solar gets price target lift from Piper Sandler, UBS

First Solar (FSLR) is basking in bullish reviews, with Piper Sandler's Kashy Harrison and UBS's Jon Windham raising their price targets on the company's stock.

Harrison has raised his price target to $219, up from $195, while Windham has increased his target to $270 from the previous $252. Favorable tailwinds, including the Inflation Reduction Act and the company's margin growth potential, fuel these lifts.

Yahoo Finance's Julie Hyman and Josh Lipton break down the details.

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This post was written by Angel Smith

Video transcript

Let's get some calls of the day.

We start with Piper Sandler, New Bs both raising their price targets.

On first solar yesterday, we spoke to first solar CEO mark with me and he told us about what has been driving the solar industry.

Look, I think it all started with the, you know, inflation Reduction Act, you know, that was announced a couple of years ago now, almost two years ago.

Now um that enabled kind of this first of a first of a kind opportunity for this industry, a whole of industry approach that could now see across the balance of this decade.

And when we talked about the investments that his company is making in R and D this year, they're also gonna be the beneficiary of a billion dollars worth of tax related subsidies as a result of the IRA.

And that seems to be what's behind at least one of the calls here.

Yeah, it was interesting.

So the team at U Bs is saying basically A I driven electricity demand is gonna ramp and that's good news in their opinion for this name.

Take their targets use 70 they reiterated by, they talk about how A I uses A I uses about 10 times more electricity than traditional Google search.

And they talk also about big companies, Amazon Microsoft Meta Google have kind of committed here to purchasing renewable power equal to their consumption electricity, right?

This push the subsidization, the incentives that are in place in particular to have them sourcing that power from renewable sources.

Um Kashi Harrison over Piper Sandler raising his price target to 219 from 195 and pointed to some of the inflation reduction Act measures that will be helpful for the company.

Something just quickly that I want to point out from the U BS note from John Wyndham is the numbers.

He said he's estimating earnings per share will grow $7.74 last year to $36.74 by 2027 and sees gross margins expanding too.

Yeah, I mean, it's a long, it's a relatively long ramp, but that's a, that's a big jump.

You can see these investors piling and just pull back that chart.

Julie's stock is up about 30% now, since, since early March.

I mean, as your point also seen as just one of the winners of these higher tariffs.

Yes, exactly.