First Solar soars 10% as UBS taps as top pick on positive IRS guidance

[Installing solar panels, Renewable energy clean and good environment.]
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First Solar (NASDAQ:FSLR [https://seekingalpha.com/symbol/FSLR]) +10.3% to its highest in 10 months as UBS named the solar panel maker as a Top Pick following fresh IRS guidance [https://seekingalpha.com/news/4486232-solar-stocks-rise-as-trumps-tax-credit-guidance-less-stringent-than-feared] that largely preserved 2030 tax credits for the solar industry, saying the decision clears a cloud that has hung over the sector for more than a year.

UBS analysts led by Jon Windham said demand for U.S. utility-scale solar projects is outpacing supply, fueled in part by the build-out of AI data centers with 100% clean energy targets, providing potential upside to volume growth and increased certainty of demand for the U.S. solar industry, and U.S. hardware suppliers are well positioned given domestic tax credit support and tariff protection.

Windham and his UBS team estimate First Solar’s (NASDAQ:FSLR [https://seekingalpha.com/symbol/FSLR]) adjusted earnings will climb to $32/share by 2027, up from $12/share last year, and anticipates potential upward earnings revisions for First Solar in 2026 and beyond from accretive capital deployment, including the possible announcement of finishing line capacity in the near term.

UBS also pointed to Nextracker (NXT [https://seekingalpha.com/symbol/NXT]) and Sunrun (RUN [https://seekingalpha.com/symbol/RUN]) as preferred names in the current market environment.

MORE ON FIRST SOLAR

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* Putting America First With First Solar [https://seekingalpha.com/article/4813989-putting-america-first-with-first-solar]
* First Solar: A Profitable Solar Stock That Gets More Compelling, Risks Remain [https://seekingalpha.com/article/4812883-first-solar-q2-profitable-solar-stock-that-gets-more-compelling-risks-remain]