First Solar Gains After Jefferies Price Target Hike
First Solar stock rose after a PT hike ($260) by Jefferies. Capacity is sold out until 2028. Almost all analysts say buy.
- Stock Price Jump: Shares of the U.S.-based solar company First Solar (FSLR) saw a rise of 2.6% in premarket trading, reaching $230.74.
- Major Price Target Hike: The brokerage firm Jefferies significantly raised its price target (PT) on FSLR, increasing it from $212 to $260. This new target suggests a potential upside of 15.6% compared to the stock's last close.
- Capacity Fully Booked: A key driver for optimism is that FSLR’s U.S. capacity is completely booked through 2028. Due to this high demand, the company is currently operating in "price discovery mode".
- Reason for Optimism: Jefferies attributes the "solid setup" for FSLR to decent bookings achieved during the third quarter (Q3). They also expect finishing lines to be attractive for the company.
- Analyst Consensus: Data compiled by LSEG indicates extremely strong support from the market: 35 out of 40 brokerages rate the stock "buy" or higher. Only four rate it a "hold" and one a "sell". The median price target is $215.50.
- Year-to-Date Performance: Leading up to the last close, the stock had already performed well, showing a 21% gain year-to-date (YTD).
- Areas for Clarity: While bullish, the brokerage noted it will still look for clarity on margin recovery and the long-term impact of tariffs.