First Solar Stock Slips Pre-Market As Analyst Cuts Price Target Amid Clean Energy Uncertainty, But Retail Bullish On China Tariff Gains
By Stocktwits Inc | First Published Jan 8, 2025, 8:03 PM ISTWells Fargo expressed a bearish outlook for the clean energy sector in 2025, citing ongoing political uncertainty surrounding the Inflation Reduction Act (IRA) and elevated interest rates.
First Solar Inc. (FSLR) stock dipped by over 1% in pre-market trading on Wednesday after Wells Fargo lowered its price target on the shares to $209 from $240, while maintaining an ‘Overweight’ rating.
The brokerage expressed a bearish outlook for the clean energy sector in 2025, citing ongoing political uncertainty surrounding the Inflation Reduction Act (IRA) and elevated interest rates, according to TheFly.
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President-elect Donald Trump has indicated plans to repeal key provisions of the IRA, which includes substantial green energy credits that have supported the sector.
Wells Fargo noted that while clean energy stocks have sold off in recent months, investor caution is likely to persist until there is greater clarity on regulatory and macroeconomic headwinds.
Despite its cautious stance on the sector, the firm reaffirmed First Solar as one of its top picks, citing the company's strong fundamentals.
On Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’ a day ago despite the price target cut. Chatter also increased to ‘extremely high’ levels.
One user argued that First Solar stands to gain if the incoming administration enforces tariffs on Chinese-made solar panels, a promise Trump reiterated during his campaign.
Shares of clean energy companies, including First Solar, have been under pressure since Trump’s election victory in November, reflecting concerns about the future of federal incentives for renewable energy.
Despite these challenges, First Solar’s stock gained 19% in the last year.
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