In recent weeks, investors have pulled out of First Solar Inc. (NASDAQ:FSLR), after the US Senate approved the removal of solar company subsidies that President Trump had proposed in his “One Big Beautiful Bill Act” last month.
RBC’s analysts, led by Christopher Dendrinos, remain confident that FSLR could be a positive for an industry which is otherwise “tasted” following the recent approval of cutting incentives from the Upper Chamber.
First Solar’s stock has dropped more than 25 percent from its high for the year.
First Solar’s stock is not affected by Trump’s budget bill.
Dendrinos believes that FSLR will be more resilient than other renewables energy shares and better insulated from any potential impacts of the Senate’s recent solar decision, mainly because it is a utility scale operator.
In a Friday research note, he said: “We think utility solar projects will be more resistant [since] they are not restricted by leasing restrictions.”
First Solar gets most of its revenue from companies with large capitalization, such as Amazon and Meta Platforms.
These names will rely on solar farms in 2025 to power artificial intelligence data centers. The demand for FSLR is as strong as it has ever been, since discounts and subsidies don’t really matter to its billion-dollar clients.
If you build a datacenter, the energy cost is about 7%. Do you believe they would stop the project if 7% became 9%? Per Lekander founder of Clean Energy Transition said in an interview with CNBC, “I don’t think so.”
First Solar’s shares are up over 20% from their low for the year to date in early April, even though the stock market has recently crashed.
Does it make sense to buy FSLR at the current price?
Lekander views the recent drop in FSLR’s stock as a “buying chance” because there are no other viable alternatives available to the Tempe-based manufacturer of solar panel.
If you tried to build a gas-turbine, it would probably be delivered by 2033. You can build a nuke plant in 2040. “You can build a solar power plant in one year,” said he to CNBC.
Lekander believes that First Solar’s operations at the utility scale are such an advantage, he is convinced its stock price could double.
Solar power retains its appeal even without the tax credit.
It’s also why Wall Street isn’t giving up on First Solar either. The average price target for FSLR is $202, which indicates a potential gain of almost 40% over current levels.
The ICD published the first article Why First Solar Stock remains a hot buy despite Trump’s spending bill.
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