On Tuesday, Piper Sandler maintained an Overweight rating on First Solar (NASDAQ:FSLR) and increased the price target to $219 from the previous $195 for the shares.
This adjustment reflects a positive outlook on the company's potential, influenced by recent policy actions and guidance regarding domestic content requirements.
The policy actions referenced include the section-201 tariff extensions and the anti-dumping/countervailing duty (AD/CVD) investigation, which are expected to impact the solar industry.
These developments have led Piper Sandler to revise the terminal average selling price (ASP) for First Solar's products by an additional cent per watt.
The analyst from Piper Sandler highlighted the changes in policy as a significant factor for the increased price target. "We are raising our PT to $219.00/sh from $195.00/sh (methodology unchanged) as we raised our terminal ASP by 1c/W given recent policy actions (section-201, AD/CVD investigation) and guidance (domestic content)," the analyst stated.
First Solar, a leading global provider of comprehensive photovoltaic (PV) solar systems, is expected to benefit from the heightened focus on domestic content in solar products.
The company's commitment to leveraging American-made solar technology aligns with the current policy environment, which could enhance its competitive position in the market.
The new price target of $219 represents Piper Sandler's confidence in First Solar's ability to capitalize on the current policy landscape and its implications for the solar energy sector. The Overweight rating suggests that the firm believes the stock has a potential upside from the current market price.
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