First Solar’s Resilience Amid Legislative Uncertainties: A Buy Recommendation by Michael Blum

Analyst Michael Blum from Wells Fargo maintained a Buy rating on First Solar (FSLR – Research Report) and decreased the price target to $177.00 from $191.00.

Michael Blum has given his Buy rating due to a combination of factors influencing First Solar’s stock. Despite the potential changes in the Senate bill that could affect the ability to stack 45X tax credits, Blum believes that the language in the bill might still be modified in future drafts. This optimism is based on the ongoing bipartisan support for onshoring solar manufacturing, which is expected to benefit companies like First Solar.
Furthermore, even if the 45X credits cannot be stacked, First Solar’s panels would remain crucial for achieving the 10% domestic content adder, thereby providing the company with significant pricing power. Blum’s valuation model, which incorporates a conservative assumption of a single 45X credit, still supports a favorable stock price range, suggesting that First Solar is well-positioned to navigate the legislative uncertainties and maintain its market strength.

In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $275.00 price target.