What Happened?

Shares of solar panel manufacturer First Solar (NASDAQ: FSLR) jumped 3.1% in the morning session after analysts at Susquehanna raised their price target on the stock. 

The financial firm boosted its target to $203.00 from $186.00 while maintaining a "Positive" rating on the solar panel manufacturer's shares. This move suggests growing confidence in First Solar's financial outlook and market performance. The optimism from Susquehanna was echoed by Morgan Stanley, which also adjusted its price target higher to $215 from $194 on the same day. This positive sentiment from Wall Street can often attract investor interest, as it points to potential upside in the stock's value based on analysts' research and expectations for the company's future growth.

After the initial pop the shares cooled down to $177.75, up 1.1% 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 previous big move we wrote about was 6 days ago when the stock gained 5.1% on the news that an analyst at Jefferies raised the price target for the company. The firm boosted its price target on First Solar to $194 from $192, while keeping a "Buy" rating on the shares. This move signals confidence in the company's future performance. 

Adding to the positive sentiment, RBC Capital also recently increased its price target to $200, citing potential for increased demand. Analysts at Jefferies noted that while concerns about tariffs and the Inflation Reduction Act have weighed on market estimates, they anticipate that clarity on these issues will lead to higher sales volumes in 2026. The firm projects that First Solar's revenue and core earnings for 2025 will surpass current market expectations. However, not all analysts were as bullish. Barclays lowered its price target to $216 from $222, though it maintained an "Overweight" rating, expecting a quiet upcoming earnings report.

First Solar is down 4.7% since the beginning of the year, and at $177.75 per share, it is trading 30.5% below its 52-week high of $255.75 from September 2024. Investors who bought $1,000 worth of First Solar’s shares 5 years ago would now be looking at an investment worth $2,926.

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