First Solar Shares Rise on Upgraded Price Target and Positive Outlook

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First Solar Shares Rise on Upgraded Price Target and Positive Outlook

On Monday, First Solar shares rose by 4% following the U.S. Department of Commerce's preliminary affirmative determinations related to anti-dumping duty investigations set for November 29, 2024. The investigations target crystalline photovoltaic cells originating from Cambodia, Malaysia, Thailand, and Vietnam, whether or not they are mounted in modules, and are also subject to concurrent countervailing duty investigations.

In response to these developments, Piper Sandler raised its price target for First Solar (NASDAQ:FSLR) from $210 to $250, maintaining its Overweight rating. The firm highlighted that the anti-dumping duties from Southeast Asian countries, which account for more than 70% of U.S. panel imports, are expected to be higher than initially anticipated. This situation could benefit First Solar as prices for competing crystalline silicon (c-Si) tier-1 manufacturers may rise significantly due to the tariffs.

An analyst from Piper Sandler noted that these tariffs could positively impact First Solar's 2025 orders in terms of both volume and price. This could extend the duration of higher average selling prices (ASP) as the fate of the Inflation Reduction Act (IRA) becomes clearer under potential Republican control. Furthermore, should project delays occur in 2025, First Solar's chances of shipping volumes from India to the U.S. market could increase.

Meanwhile, RBC Capital reiterated its Outperform rating and $315 price target for First Solar (NASDAQ:FSLR). The firm acknowledged the Department of Commerce's preliminary findings regarding the dumping of solar products from Southeast Asian countries into the U.S. market. According to RBC Capital, significant dumping rates established for major importers should support U.S. pricing and could lead to a shift toward domestic production. They anticipate that import prices from Southeast Asia could rise significantly under the proposed tariffs, viewing this as a positive development for First Solar.