Piper Sandler Initiates Overweight Rating for First Solar Amid Improved Profitability
On September 9, Piper Sandler initiated coverage of First Solar (NASDAQ:FSLR) with an Overweight rating and a $260 price target. The firm believes the market underestimates First Solar's long-term value beyond policy-driven benefits like the 45X tax credit. It highlighted the company’s low-cost domestic supply chain as a key differentiator in a constrained U.S. solar manufacturing environment. First Solar reported improved profitability for Q2 2026, with net income rising to $423 million and adjusted EBITDA increasing to $644 million year-over-year. However, the company’s cash balance declined due to capital spending on its South Carolina facility. Despite these improvements, FSLR shares are down about 22% YTD. Analysts remain positive with a consensus Buy rating, supported by First Solar's strong earnings growth and attractive valuation compared to sector peers (forward P/E of 9.27 vs. median of 22.86). However, risks include policy changes in U.S. tax credits, tariffs, and rising competition.
Tickers: $FSLR
Topics: earnings_report profitability stock_rating