First Solar (FSLR) – A Clean Energy Player With Room to Rebound
Amid the market selloff, not every name in the red deserves to be written off — and First Solar (NASDAQ: FSLR) might be one of the most overlooked opportunities right now. Shares of the largest U.S.-based solar panel manufacturer have had a rough ride over the past six months, dropping more than 42%, and are down nearly 25% year to date. That kind of pullback can raise concerns — but in this case, it may be setting the stage for a sharp recovery.
Here’s why: the recent selloff has less to do with fundamentals and more to do with shifting political sentiment. Investors are nervous that clean energy tax credits under the Section 45X program could disappear under a Republican administration. That uncertainty has weighed heavily on sentiment. But even in a base case where those tax credits phase out after 2026, First Solar is in a better position than many of its peers to adapt — and potentially benefit.
The reason? Tariffs. As the U.S. doubles down on domestic manufacturing and imposes additional duties on foreign competitors, First Solar’s competitive position actually improves. The company becomes a more attractive supplier to U.S. buyers, especially utility-scale customers that are looking for tariff-insulated solutions. That kind of negotiating leverage matters, particularly in an industry where price pressure is constant.
While the stock has lagged, the long-term growth story hasn’t changed. The company is a critical part of the domestic energy transition and continues to expand its U.S. production capacity. If markets begin to stabilize and policy overhangs become clearer, FSLR could re-rate quickly. That’s why we see the current weakness as a potential entry point — not a red flag.
For context, Mizuho has an Outperform rating on the stock and a $252 price target, which implies nearly 96% upside from the April 4 close. The broader analyst consensus also remains bullish, with an average price target of $240.59, pointing to an 85% potential gain. Again, we’re not hanging our hat on a specific target — but the directional view makes sense based on the current setup.
If you’re looking for a contrarian clean energy name with strong fundamentals and improving policy tailwinds, First Solar deserves a spot on your radar.
