First Solar Stock Gains As Mizuho Hikes Price Target On ‘Materially Improved’ Sales Outlook: Retail’s Divided

Mizuho analysts said that based on their channel checks, First Solar has a “better moat” over its rivals thanks to its choice of technology.

Shares of First Solar Inc. (FSLR) gained nearly 1.5% in morning trade on Tuesday after the analysts at Mizuho hiked their price target for the stock on a “materially improved” sales outlook post-2026.

According to TheFly, Mizuho’s price target for the First Solar stock is now $259, up from $218, implying an upside of nearly 58% from current levels. The brokerage also upgraded its rating of the stock to ‘Outperform’ from ‘Neutral.’

Mizuho analysts said that based on their channel checks, First Solar has a “better moat” thanks to its tunnel oxide passivated contact technology compared to its competitors, which use expensive and inefficient passivated emitter and rear cells.

First Solar is an Arizona-based manufacturer of solar panels and a provider of utility-scale photovoltaic power plants.

One of the overhangs on First Solar stock is the uncertainty surrounding the Trump administration’s tax credits policy for solar companies. Mizuho notes that even if the tax credits program ends in 2026, tariffs will ease some of the pain for First Solar.

Lastly, according to the brokerage, First Solar is expected to be in a better negotiating position in 2027.

The company is expected to post its fourth-quarter and fiscal year 2024 earnings on Feb. 25.

However, retail sentiment on Stocktwits around the First Solar stock showed caution among users. It stayed in the ‘bearish’ (36/100) territory despite Mizuho's rating upgrade and price target hike.

One user thinks they should have sold the stock and booked profits after it witnessed volatility in early trade.

First Solar’s shares have been on a downtrend over the past six months, losing nearly 26% of their value.

However, the stock has delivered positive returns over the past year, with gains of 3.6%.

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