The Inflation Reduction Act has pushed First Solar $FSLR stock up 100% over the weeks since its passage. Analysts jumped in on the pump of $FSLR stock pushing it up to a price not seen since 2011 as buy orders have come in off dark pools over the last few weeks.
Dark Pool Trades In First Solar $FSLR Stock
Guerilla Stock Trading has detected dark pool trades in First Solar $FSLR stock. The dark pool prints appear to be buy orders because of how $FSLR stock rose immediately after.
Make sure to review this lesson on dark pool trading so that you understand the chart above.
First Solar price target raised to $152 from $141 at BofA
On August 31, 2022, BofA analyst Julien Dumoulin-Smith raised the firm’s price target on First Solar to $152 from $141 and kept a Buy rating on the shares after the company announced plans to expand U.S. manufacturing capacity with a new 3.5GW facility in the Southeast and further expand existing Ohio capacity. The expanded capacity will facilitate a more significant IRA credit uplift and higher profits from higher shipments of premium U.S. panels.
First Solar price target raised to $164 from $119 at Baird
On August 31, 2022, Baird analyst Ben Kallo raised the firm’s price target on First Solar to $164 from $119 and kept an Outperform rating on the shares. The analyst said the company’s planned investment in expanding capacity domestically is another step in solidifying its pole position in the U.S. solar market. He revised his 2023 numbers to reflect ramping costs associated with the investments but sees the upside as additional capacity comes online.
BofA upgrades First Solar to Buy and sees many ways to win from the Inflation Reduction Act
On August 26, 2022, BofA analyst Julien Dumoulin-Smith upgraded First Solar to Buy from Neutral with a price target of $141, up from $104.50. When he last refreshed his view on First Solar days after the initial Inflation Reduction Act, or IRA, announcement, he did not yet appreciate the magnitude of IRA credits that would accrue to the company, Dumoulin-Smith tells investors. The analyst said that recent talks with management and the IRA being signed into law lend him confidence in baking in a “significant valuation uplift” attributable to IRA credits.
First Solar $FSLR upgraded to Equal Weight from Underweight at Morgan Stanley
On August 18, 2022, Morgan Stanley analyst Stephen Byrd upgraded First Solar to Equal Weight from Underweight with a price target of $136, up from $54. The significant price target increase is driven primarily by the benefits to the company from the Inflation Reduction Act, which includes a substantial subsidy for domestic solar panel manufacturing, Byrd tells investors in a research note. The analyst sees “healthy” and growing margins for First Solar, but in the long term, he remains concerned about the degree of competition from efficient, large-scale Asian panel manufacturers.
First Solar’s $FSLR price target raised to $165 from $120 at Piper Sandler
On August 15, 2022, Piper Sandler analyst Kashy Harrison raised the firm’s price target on First Solar to $165 from $120 and kept an Overweight rating on the shares as the analyst updated the model to incorporate the manufacturing credits within the Inflation Reduction Act, or IRA. The analyst added that the IRA, along with its onshoring focus, represents “a transformational event” for First Solar that may potentially drive even more long-term earnings growth than Harrison is contemplating.
KeyBanc upgrades First Solar $FSLR to Overweight and sets a $145 price target
On August 11, 2022, KeyBanc analyst Sophie Karp upgraded First Solar to Overweight from Sector Weight with a $145 price target. The analyst argues that the introduction of the manufacturing tax credit for domestically produced solar panels makes First Solar the most direct immediate beneficiary of the policy in her coverage. Despite relative outperformance, since the news of the IRA compromise broke, Karp sees further upside, particularly given the company’s progress toward capacity additions and efforts toward reducing sensitivity to input costs. She estimates that with just the existing and announced capacity, First Solar could be eligible for as much as $400M in tax credits and should achieve at least a 20% gross margin by 2025 on $3B-plus in sales.
First Solar to Invest up to $1.2 Billion in Scaling Production of American-Made Responsible Solar by 4.4 GW
On August 30, 2022, First Solar, Inc. (Nasdaq: FSLR) announced that it plans to invest up to $1.2 billion in scaling production of American-made, responsibly-produced photovoltaic (P.V.) solar modules, directly supporting the country’s transition to a decarbonized future and enabling the fight against climate change. The investment is forecast to expand the company’s ability to produce American-made solar modules for the U.S. solar market to over 10 gigawatts (G.W.)DC by 2025.
As part of its push to scale U.S. production of solar modules, the company intends to build its fourth, fully vertically integrated domestic factory, with an annual capacity of 3.5 GWDC, in the U.S. Southeast. First Solar, the only US-headquartered company among the world’s ten largest solar manufacturers, expects to invest up to $1 billion in the new factory, which, contingent upon permitting and pending approval of various federal, state, regional, and local incentives, is expected to commence operations in 2025.
Additionally, the company will invest $185 million in upgrading and expanding its Northwest Ohio manufacturing footprint, currently the largest vertically-integrated complex of its kind in the Western Hemisphere, by 0.9 GWDC. As part of its plans, First Solar will invest in expanding the capacity of its two operating facilities in Perrysburg and Lake Township, Ohio, by 0.6 GWDC to 3.6 GWDC of annual Series 6 module capacity. The company will also expand its third Ohio factory, expected to be commissioned in the first half of 2023, to 3.5 GWDC of annual Series 7 module capacity. The expansion will increase First Solar’s total investment in its Ohio manufacturing facilities to over $3 billion, with a cumulative yearly production capacity of over 7 GWDC by 2025.
First Solar estimates that the new investment will add at least 850 new manufacturing jobs, taking its total number of direct jobs in the U.S. to over 3,000 people in four states by 2025, which is believed to make it the largest employer in the American solar manufacturing sector. By 2025, First Solar is expected to support an estimated 15,000 indirect and induced jobs due to its ongoing and future manufacturing operations.
“In passing the Inflation Reduction Act of 2022, Congress and the Biden-Harris Administration have entrusted our industry with the responsibility of enabling America’s clean energy future, and we must meet the moment in a manner that is both timely and sustainable,” said Mark Widmar, chief executive officer, First Solar. “This investment is an important step towards achieving self-sufficiency in solar technology, which, in turn, supports America’s energy security ambitions, its deployment of solar at scale, and its ability to lead with innovation. We are proud of the fact that our manufacturing presence in the U.S. is expected to, directly and indirectly, support over 18,000 jobs across the country by 2025, while our manufacturing investment will add an estimated $3.2 billion2 in value to the U.S. economy, reflecting the impact of solar manufacturing on our country. We are investing in America’s future.”
On its last earnings call on July 28, 2022, First Solar announced a record bookings backlog of 44.3 GWDC. The company has seen demand for its advanced thin-film photovoltaic solar modules driven by its ability to provide its customers and partners with long-term supply certainty, lower political and compliance risk, and access to its best available technology through its agile contracting approach.
Widmar added, “While we have made no decisions at this time, we continue to evaluate further investments in incremental capacity and could announce further expansion plans. Any such decision would be developed on a solid foundation of strong demand, a repeatable vertically integrated manufacturing template, a proven technology platform, and a robust balance sheet.”
Designed and developed at its R&D centers in California and Ohio, First Solar’s advanced thin film P.V. modules set industry benchmarks for quality, durability, reliability, design, and environmental performance. Each module features a layer of Cadmium Telluride (CadTel) semiconductor that is only three percent the thickness of a human hair. Additionally, the company continues to optimize the amount of semiconductor material used by enhancing its vapor deposition process through continued investment in R&D focused on more efficient module technology with a thinner semiconductor layer. First Solar also operates an advanced recycling program that provides closed-loop semiconductor recovery for use in new modules.
In addition to its Ohio manufacturing facilities, First Solar also operates factories in Vietnam and Malaysia and is building its first new manufacturing facility in India, which is scheduled to begin operations in the second half of 2023. Upon completion of its expansion plans in the United States and India, the company expects to have over 20 GWDC of annual global manufacturing capacity in 2025.
Bullish Option Flow Detected In $FSLR Stock
Guerilla Stock Trading has detected bullish option flow in First Solar $FSLR stock.
In particular, the October 21, 2022, $165 call option contract has had open interest surge higher.
Make sure to review this lesson on option flow so that you understand the image above.
📺 First Solar announces $1.2 billion investment in the U.S.
📈 First Solar $FSLR Chart Technical Analysis
First Solar $FSLR stock is in a strong technical uptrend. The market is approaching overbought territory, so watch out for a trend reversal from profit-taking.