Key Takeaways
- Deutsche Bank raised First Solar (FSLR) from Hold to Buy, increasing its price target from $245 to $272
- Deutsche Bank analyst Corinne Blanchard highlighted the company’s $2.1 billion net cash balance and solid fundamentals
- FSLR shares dropped 1.6% to close at $229.28 on Tuesday and have declined more than 12% year-to-date in 2026
- A pending Section 232 decision on polysilicon imports from overseas — anticipated by early August — could serve as a significant catalyst
- Wells Fargo increased its price objective to $320 while maintaining an Overweight stance, pointing to possible earnings growth from tariff outcomes
Shares of First Solar continued their downward trajectory on Tuesday, declining 1.6% to finish at $229.28, despite receiving an upgrade to Buy from Deutsche Bank along with an elevated price target of $272, up from the previous $245.
Deutsche Bank’s Corinne Blanchard described the solar manufacturer as “fundamentally strong,” emphasizing its robust $2.1 billion net cash position recorded in Q2. She believes the current valuation presents an attractive entry point for investors with a medium to long-term horizon.
FSLR shares have tumbled over 12% since the beginning of 2026, significantly underperforming the S&P 500, which has posted gains of 9.4% during the same timeframe.
Blanchard noted that the momentum from May’s clean-tech surge has dissipated. However, she emphasizes that the company’s core investment thesis remains intact.
The stock currently trades substantially below its 52-week peak of $320.95, though the recovery trajectory may depend heavily on policy decisions coming from the nation’s capital.
Pending Section 232 Ruling Emerges as Critical Trigger
Blanchard anticipates positive momentum for the stock once federal authorities provide clarity on the Section 232 investigation examining foreign polysilicon imports. This determination, projected for early August, would enable management to finalize strategic decisions regarding domestic versus overseas operations — both currently in a holding pattern.
The company has already begun transferring equipment to U.S. facilities following last year’s decision to bring its finishing operations onshore. Blanchard projects an “acceleration of financial performance” in upcoming quarters, with 2027 expected to mark a return to more typical business conditions.
First Solar represents the sole American thin-film solar panel producer. This unique positioning grants it significant advantages under Section 45X of the Internal Revenue Code, which provides cumulative manufacturing tax incentives for domestically produced solar components.
This domestic manufacturing focus has gained additional relevance during the Trump administration’s national security assessment of Chinese-manufactured energy inverters. As a producer with zero dependence on Chinese technology, First Solar could see substantial benefits if domestic content requirements become more stringent.
Wells Fargo Establishes $320 Price Objective
Wells Fargo joined the optimistic chorus, elevating its price target from $255 to $320 while reaffirming an Overweight recommendation. The firm’s analyst pointed to “asymmetric upside” connected to the Section 232 determination, suggesting a positive resolution could elevate U.S. solar module pricing and generate substantial earnings growth.
This upgrade arrived on a trading session marked by notably elevated options activity in FSLR at market open, indicating some market participants were taking positions in anticipation of the analyst action.
Broader market conditions provided a supportive backdrop. The Nasdaq advanced 1.1% while the S&P 500 climbed 0.8% during the session when Wells Fargo released its assessment.
The solar industry has faced challenging conditions recently. The Zacks Solar industry had plummeted more than 23% in the month leading up to Wells Fargo’s note. The analyst-driven momentum in FSLR marked a notable sentiment shift for the sector, at least temporarily.
The Street’s consensus outlook on the stock remains predominantly favorable. Among 37 analysts monitored by FactSet, 23 assign Buy or Overweight ratings, 11 recommend Hold, and two suggest Underweight. KeyBanc Capital Markets stands as the sole firm with a Sell recommendation.
Despite these positive analyst revisions, FSLR has experienced double-digit percentage losses since early June. The stock’s next significant directional move will likely hinge on the timing and substance of the polysilicon tariff ruling.
