First Solar’s (NASDAQ:FSLR) stock has fallen nearly 60% over the past year. This is largely due to Trump returning to the White House.
Investors are concerned President Donald Trump may halt funding of clean energy projects under the Inflation Reduction Act, a law passed by the former government.
In recent years, these initiatives have brought a lot of benefits to renewable energy companies, such as FSLR.
Corinne Blanchard, analyst at Deutsche Bank, recommends purchasing First Solar because the stock is currently priced so low that it already reflects the majority of bad news.
Why is Deutsche Bank positive on First Solar stock?
Blanchard is still bullish about First Solar, which has been brutally beaten over the last nine months. She expects that the “45x Tax Credit for FSLR will remain in place” with Trump 2.0.
Solar power is becoming a more viable alternative for new residential developments in the US. This is especially true since costs have dropped significantly over the past few months.
FSLR is among the few large, utility-scale companies that are based in the United States.
The “buy” ratings from Deutsche Bank on First Solar come with a price target of $265, which indicates a potential gain well above 100% over current levels.
FSLR stocks could be affected by Trump tariffs
First Solar is also exciting because of the new Trump trade policies that will be in place by 2025.
This is because the majority of solar energy comes from China.
Higher tariffs will make Chinese goods less appealing, and this may allow domestic producers such as FSLR to grow their share of the market.
Investors may be more willing to pay higher multiples for First Solar stock if this translates to a better growth in the topline.
The solar panel maker’s shares have fallen dramatically, but it is still a dull investment for income investors, as it does not pay dividends at the time of writing.
First Solar continues to grow at an impressive pace
Despite its challenges, Nasdaq listed firm, reported a solid profit for the fourth fiscal quarter of February. This confirms Deutsche Bank’s view that FSLR is a positive.
First Solar increased its profits by over 12%, to $3.65 a share. Net sales of $1.51 billion also grew by a higher than expected 30.7%.
Mark Widmar was the chief executive of the company at the time.
We continued to lay the foundations for our strategy in 2024. In 2024, we expanded our manufacturing capacity and established infrastructure. We also shipped an unprecedented volume of modules.
The solar company’s February forecast was $5.3 to $5.8 Billion in revenues for the entire year. This was a very optimistic estimate, as the middle of the range that it guided was much higher than the $5.46 Billion experts predicted.
First Solar shares plunge 60%: Is it the bottom? This post may be updated as new information unfolds
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