First Solar (NASDAQ: FSLR) has tanked nearly 60% in less than a year, much of which has been related to Trump’s return to the White House.
Investors have been concerned that President Donald Trump will pause funding for clean energy initiatives under the previous government’s Inflation Reduction Act (IRA).
These initiatives have been a big benefit for renewable energy names, including FSLR, in recent years.
Still, Deutsche Bank analyst Corinne Blanchard recommends buying First Solar partly because much of the bad news is already baked into the solar stock at current levels.
Why is Deutsche Bank positive on First Solar stock?
Blanchard remains bullish on First Solar stock that’s been brutally hammered over the past nine months since she expects the “45x tax credit for FSLR to remain in place” under Trump 2.0.
Plus, solar is emerging as a viable option to power new housing developments in the US, especially since the costs have lowered significantly in recent months.
A gradual shift to renewable energy could benefit FSLR shares the most as it’s among a handful of big, utility-scale solar companies in the United States.
Deutsche Bank’s “buy” rating on First Solar comes with a $265 price target that indicates potential upside of well over 100% from current levels.
FSLR shares could from Trump tariffs
First Solar remains exciting also because it stands to benefit from Trump’s new trade policies in 2025.
That’s because a significant part of the solar industry is based out of China.
But higher tariffs are broadly expected to make Chinese products less attractive, which may help domestic producers like FSLR grow their market share moving forward.
This could translate to better topline growth, potentially making investors more comfortable to pay a premium multiple for First Solar stock.
Despite a massive decline in the solar panel manufacturer’s share price, however, it remains dull for income investors since it doesn’t pay a dividend at writing.
First Solar is still growing at a commendable pace
Despite challenges, the Nasdaq-listed firm reported solid earnings for its fiscal fourth quarter in February, adding to Deutsche Bank’s positive view on FSLR.
First Solar improved its earnings by more than 12% to $3.65 per share in Q4. At $1.51 billion, its net sales grew a more-than-expected 30.7% as well.
At the time, Mark Widmar, the company’s chief executive told investors:
In 2024, we continued building the foundations required for our long-term strategy. We expanded manufacturing capacity, established the infrastructure, and shipped a historic volume of modules.
In February, the solar company guided for $5.3 billion to $5.8 billion in revenue for the full year, which was upbeat give the mid-point of its guided range was well above $5.46 billion that experts had called for.
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