What Happened?

Shares of solar panel manufacturer First Solar (NASDAQ: FSLR) jumped 3.3% in the morning session after Jefferies raised its price target on the stock to $260 from $212, citing a positive outlook for the company. 

The investment firm pointed to a “solid setup” for the solar panel maker, backed by strong bookings in the third quarter. A key factor in the updated view was that First Solar's U.S. production capacity was now fully booked through 2028, a clear sign of very strong demand. The firm also noted that the company had returned to “price discovery mode,” which suggested it had greater control over its pricing. Jefferies kept its "Buy" rating on the stock.

After the initial pop the shares cooled down to $230.56, up 2.5% from previous close.

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What Is The Market Telling Us

First Solar’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 20.3% on the news that a U.S. Senate panel proposed phasing out solar and wind energy tax credits by 2028, raising concerns about future profitability and project viability for solar companies. The phasing out is expected to begin as early as 2026, diminishing the financial incentives that have been critical drivers of growth in the renewable energy sector.

First Solar is up 23.6% since the beginning of the year, and at $230.56 per share, it is trading close to its 52-week high of $235.12 from October 2024. Investors who bought $1,000 worth of First Solar’s shares 5 years ago would now be looking at an investment worth $3,429.

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