The one solar stock to buy after Trump’s win hit the sector, analysts say
First Solar has tumbled nearly 17% over the past month as the solar sector has broadly sold off in tandem with President-elect Donald Trump’s rise, but some analysts see the dip as a buying opportunity. “As the dust settles, we think FSLR will emerge a winner,” Michael Blum, an analyst at Wells Fargo, told clients in a Wednesday note. First Solar is the largest manufacturer of solar panels in the U.S. and is rated overweight at Wells Fargo. Republicans will probably seek to repeal some parts of the Inflation Reduction Act if they win both chambers of Congress, according to the Wall Street bank. But the domestic manufacturing tax credits that benefit First Solar are likely to survive because they support jobs in GOP congressional districts, according to the bank. Trump has also threatened stiff tariffs on China, which would benefit First Solar by reducing competition. Tailwinds from tariffs, however, would be offset by headwinds from IRA repeal if the GOP goes after the manufacturing tax credits. In the universe of publicly traded solar stocks, however, analysts view First Solar as best positioned to weather the storm. “We reiterate our Buy on FSLR due to its domestic manufacturing base,” Dimple Gosai, a Bank of America analyst, told clients in a note on Wednesday. “In our view, higher tariffs on imported solar panels would diminish competition from Chinese manufacturers, pushing demand towards First Solar’s U.S.-made products.” Bank of America has a price target of $259 for First Solar, implying about 33% upside from Wednesday’s close of $194.02 per share. This post has been syndicated from a third-party source. View the original article here.
