First Solar (NASDAQ:FSLR) earned an upgrade from Morgan Stanley, which came in the wake of a 20% decline in the stock over the past three months.
Morgan Stanley analysts revised their rating from Equalweight to Overweight. Additionally, they increased the price target for the stock from $214 to $237. This new target suggests a significant potential upside of 64% from the stock’s closing price on Thursday.
The analysts pointed out that First Solar presents one of the strongest risk-adjusted earnings profiles among U.S. Clean Tech companies within their coverage. This assessment is based on the company’s sold-out position through 2026 and its effective cost-hedging strategies. These factors are expected to contribute to a substantial margin expansion of approximately 1,020 basis points through 2026, with relatively low risk.
Morgan Stanley’s analysis of solar panel costs leads them to anticipate that First Solar’s pricing will remain robust in the short to medium term, supporting a positive outlook for the company’s financial performance.