First Solar (NASDAQ:FSLR) stock got one heck of an upgrade on Monday from Citigroup analyst J.B. Lowe. Let’s start out with the changes themselves before diving into the why.
The Citi analyst increased the rating for FSLR stock to buy with this update. To go along with that, he also jumped the price target up from $88 per share to $100 per share. This has Lowe taking quite the bullish stance compared to other analysts.
For example, the current consensus rating for FSLR stock is hold. This comes from six sell ratings, seven hold ratings and four buy ratings. The consensus price target is also below Lowe’s at $90.31 per share.
So why is the Citi analyst so positive on FLSR stock? It all has to do with government plans that could benefit the solar panel company.
To start off with, Lowe notes the possible extension of a 10-year solar tax credit as a benefit for FLSR stock. Adding to that, it could also get a boost from the reintroduction of a 48C Advanced Manufacturing Tax Credit. Finally, current trade sanctions against China could keep it from having to compete against overseas solar panel rivals.
It’s also worth pointing out that FLSR could benefit from upcoming news from the company. First Solar is planning to release its earnings report on April 29 and those results could send shares of the stock higher. All in all, the future is looking bright for the company, if investors believe the Citigroup analyst take on the stock, reports TheStreet.
While FLSR did get an upgrade today, the stock couldn’t maintain positive momentum off of that news. As of noon Monday, it’s dipping almost 1%. The stock is also down 21.6% since the start of the year.
If FLSR isn’t what investors are looking for, there are other options in the market.
The solar power market is heating up as companies prepare to take advantage of changes being introduced by the Biden Administration. Some examples include Canadian Solar (NASDAQ:CSIQ), NextEra Energy (NYSE:NEE), Plug Power (NASDAQ:PLUG) and more. Check them out below.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.