First Solar ( (FSLR) ) has fallen by -7.77%. Read on to learn why.
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First Solar experienced a notable stock price decline of 7.77% over the past week, despite a strong start earlier in the month. Initially, the stock surged by 9.7% after UBS analyst Jon Windham named it a top pick, following favorable IRS guidance on clean energy tax credits. This guidance alleviated some of the uncertainty that had been affecting the solar sector, particularly benefiting large utility-scale projects, a key market for First Solar.
However, the positive momentum was not sustained, leading to a downturn in the stock’s performance. The decline could be attributed to broader market volatility and profit-taking by investors after the initial surge. Despite this, First Solar remains a strong contender in the solar industry, with UBS projecting significant earnings growth potential due to increasing demand for utility-scale solar projects, driven by the rise of AI data centers seeking clean energy.
Wall Street maintains a positive outlook on First Solar, with a Strong Buy consensus rating from analysts. The average price target suggests a slight downside from current levels, but the long-term prospects remain promising. Analysts highlight the company’s strategic position to benefit from tax credits and tariff protections, which could support future growth and stability in its stock performance.