Billions are earmarked for combating climate change, boding well for First Solar stock
Among clean energy companies set to benefit from a major spending package headed to the House this week, analysts said First Solar, Inc. (NASDAQ:FSLR) stands out given its scale and alternative energy services.
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First SolarIs Set To Benefit From New Legislation
First Solar, which makes solar panels and other photovoltaic gear, stands poised to receive a significant portion of the legislative-fueled windfall.
The Center for American Progress, a nonpartisan think tank, said the bill earmarks $369 billion over ten years to support clean energy deployment, domestic manufacturing, and pollution reduction.
JPMorgan Chase & Co (NYSE:JPM) analyst Mark Strouse believes that the bill’s manufacturing credits will uadd $931 to First Solar’s 2024 net income.
Strouse upgraded FSLR stock to “overweight” from “neutral
Guggenheim analysts upgraded First Solar to a “buy” rating from “neutral.” Also, Piper Sandler (NYSE:PIPR) boosted its price target for the company’s shares to $120 from $90, rating it overweight.
Senate Democrats united after a series of false starts and eleventh-hour negotiations, eventually passing The Inflation Reduction Act.
It needs Hous- approval before it can go to the White House to be signed by President Biden. A House vote is expected this week.
The bill falls short of sweeping changes that President Joe Biden wanted in his original Build Back Better plan, but retains focus on climate, healthcare and taxes.
On July 28, First Solar reported a 52 cents a share second quarter profit, on $621 million revenue, beating estimates for both, according to consensus analyst estimates from Zacks Investment Research, which projected 30 cents a share profit and rev nine of $598.8 million.
However, on a cautionary note, an AP report mentioned that “First Solar expects a full-year loss of 25 cents per share, with revenue in the range of $2.55 billion to $2.8 billion.”
Article by Joshua Enomoto, Fintel
