Citi Says First Solar (NASDAQ:FSLR) Will Do Well No Matter Who Wins Election
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Citi Says First Solar (NASDAQ:FSLR) Will Do Well No Matter Who Wins Election

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Citi upgraded its rating on FSLR stock from Hold to Buy and raised its price target from $200 to $254.

Shares of solar company First Solar (FSLR) are rallying today after Citi upgraded its rating from Hold to Buy and raised its price target from $200 to $254. Citi believes First Solar will do well no matter who wins the upcoming U.S. election and that its current long-term pricing for solar modules is considered low, which makes it a good investment in either political scenario.

Citi analyst Vikram Bagri estimates First Solar’s module pricing at around $0.26/W, which he says is conservative. In fact, he is now modeling pricing closer to $0.28/W, which is more aligned with current market conditions. Interestingly, Bagri also notes that this price could rise depending on anti-dumping or countervailing duties and election results.

For reference, anti-dumping duties are taxes imposed on imports that are priced below fair market value, while countervailing duties are tariffs applied to offset government subsidies given to foreign manufacturers that allow them to sell products at unfairly low prices. Both are used to protect domestic industries from unfair competition. Since FSLR mainly manufactures products in the U.S., it would likely benefit from tariffs.

Solar Stocks Likely to Benefit More from Democrats

It is no secret that Democrats are more in favor of renewable energy sources than Republicans. As a result, Bagri also mentioned that a Republican election win could lead to more tariffs, affecting companies like Canadian Solar (CSIQ), which would be negatively impacted by tariffs since it mostly relies on Canadian and Chinese manufacturing. Meanwhile, a Democratic win might increase capex spending and benefit a wider range of solar companies.

Is FSLR a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on FSLR stock based on 22 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 34% rally in its share price over the past year, the average FSLR price target of $285.95 per share implies 41.55% upside potential.

See more FSLR analyst ratings

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