First Solar (FSLR) Surges 5.26% on Analyst Upgrades and Institutional Backing, Hits 14-Month High

Shares of First Solar (FSLR) surged 3.25% on Wednesday, extending a two-day rally that pushed the stock to a new 14-month high. The intraday gain of 4.09% marked its strongest performance since October 2025, with the stock now up 5.26% over the past two trading sessions. The recent momentum reflects growing investor confidence in the solar manufacturer’s strategic positioning and operational strength.

Analyst activity has been a key catalyst, with multiple institutions upgrading their price targets for FSLR. Jefferies raised its target to $260 from $212, citing robust third-quarter bookings and a fully booked U.S. production pipeline through 2028. BMO Capital and Deutsche Bank also reaffirmed or elevated their recommendations, emphasizing the stock’s favorable risk/reward profile amid a favorable renewable energy landscape. These upgrades have amplified market sentiment, particularly as First Solar regains pricing control in a competitive sector.

Institutional investors have further fueled the stock’s ascent. Entities such as Duality Advisers LP and Granahan Investment Management LLC increased their holdings in late September, with combined investments exceeding $23 million. While some firms like DNB Asset Management AS reduced positions, the overall trend signals continued backing for First Solar’s long-term growth thesis. This institutional activity aligns with the company’s strategic expansions, including a $1.1 billion manufacturing facility in Louisiana and an expanded 8 GW partnership with Longroad Energy.

Valuation dynamics also play a role in the stock’s recent performance. Analysts estimate an intrinsic value of $293.47 per share, suggesting potential upside from current levels. Earnings forecasts point to doubling over the next few years, driven by higher cash flows and pricing power. However, the stock’s high beta and exposure to trade policy shifts highlight its cyclical nature, with short-term volatility expected to persist. Investors are advised to balance optimism with caution, particularly as First Solar navigates supply chain challenges and global pricing pressures.

The broader renewable energy sector remains a tailwind, with declining solar technology costs and strong demand for clean energy solutions. First Solar’s focus on domestic manufacturing aligns with U.S. policy priorities, potentially unlocking future incentives. Yet, trade policy uncertainty and competition from international module producers remain risks. For now, the stock’s rally underscores its role as a bellwether in the energy transition, offering a blend of growth potential and undervaluation for investors aligned with the sector’s trajectory.