Baird upgraded First Solar to Outperform from Neutral. The firm significantly raised its price target for the stock from $205 to $318.
The upgrade follows the implementation of Section 232 tariffs on imported solar products. These trade policies impose tariffs and minimum import prices on polysilicon-based components, primarily targeting Chinese supply chains.
First Solar utilizes thin-film technology and does not use polysilicon. This positioning allows the company to avoid the higher costs currently imposed on its competitors.
Analysts expect this regulatory clarity to enable First Solar to secure new long-term contracts at higher price points. Demand for domestically produced solar modules is anticipated to rise.