First Solar Upgraded to Buy at Truist on Stronger Pricing Outlook

First Solar, Inc. (NASDAQ:FSLR) saw its stock rise 1.5% to $180.40 on Monday after Truist Securities upgraded the solar manufacturer from Hold to Buy and increased its price target from $229 to $270. The upward revision reflects expectations for robust solar panel pricing and favorable market demand extending into the next decade.

A major catalyst behind the positive outlook is the upcoming Section 232 trade rule, effective December 4, which establishes a minimum import price alongside tariffs of $0.44 per watt for crystalline silicon modules. While First Solar has already sold out its domestic Series 7 manufacturing capacity through 2028, new orders scheduled for the end of the decade are commanding higher pricing than previously anticipated. The company also benefits from domestic tax credits and policy incentives, supporting profit margins in the mid-20% range even as certain federal credits step down in the 2030s.

Financially, First Solar transitioned to positive free cash flow in 2025 following a heavy capital expenditure cycle. Cash generation is projected to expand from $308 million in 2024 to $2.5 billion by 2027. Looking ahead, investors will watch how the company deploys this capital into next-generation solar technology, including tandem perovskite modules designed to reach efficiency rates above 35% compared to current standard technologies.