First Solar (FSLR) Stock Dips Despite Analyst Upgrades From Deutsche Bank and Wells Fargo

Key Takeaways

• Deutsche Bank elevated First Solar (FSLR) from Hold to Buy, increasing the price target from $245 to $272
• Deutsche Bank’s Corinne Blanchard highlighted the company’s $2.1 billion net cash reserve and described it as “fundamentally strong”
• Shares declined 1.6% to close at $229.28 on Tuesday, extending 2026 losses beyond 12%
• An upcoming Section 232 decision regarding foreign polysilicon imports, anticipated by early August, could serve as a major catalyst
• Wells Fargo increased its price objective to $320 while maintaining an Overweight stance, pointing to potential earnings growth from tariff outcomes

Shares of First Solar continued their descent on Tuesday, dropping 1.6% to finish at $229.28, despite receiving an upgrade from Deutsche Bank that elevated the stock to Buy status alongside a price target increase from $245 to $272.

First Solar, Inc., FSLR

Corinne Blanchard, an analyst at Deutsche Bank, characterized the solar manufacturer as a “fundamentally strong” investment opportunity, emphasizing its substantial $2.1 billion net cash position recorded in the second quarter. She views the current valuation as an attractive entry point for investors with medium- to long-term horizons.

FSLR has tumbled more than 12% year-to-date in 2026, significantly underperforming the S&P 500’s 9.4% gain during the same timeframe.

Blanchard noted that the momentum generated by a clean-energy sector rally in May has dissipated. However, she emphasized that the company’s core investment thesis remains intact.

Trading well below its 52-week peak of $320.95, the stock’s recovery trajectory may depend heavily on developments in the nation’s capital.

Federal Polysilicon Ruling Could Unlock Stock Performance

Blanchard anticipates a positive stock reaction following clarity on the federal government’s Section 232 investigation examining foreign polysilicon imports. The decision, projected to arrive by early August, would enable company leadership to finalize strategic decisions regarding domestic and overseas operations — both currently in a holding pattern.

The solar manufacturer has already begun relocating equipment to domestic facilities after committing to onshore its finishing operations last year. Blanchard forecasts an “acceleration of financial performance” in upcoming quarters, with 2027 positioned to represent a more normalized operational year.

First Solar holds a unique position as America’s sole thin-film solar panel producer. This status provides significant advantages under Section 45X of the Internal Revenue Code, which provides cumulative manufacturing tax incentives for U.S.-based solar production.

This domestic manufacturing footprint has garnered additional attention during the Trump administration’s national security examination of Chinese-manufactured energy inverters. As a producer operating without Chinese technology dependencies, First Solar could gain considerably if domestic content requirements become more stringent.

Wells Fargo Projects $320 Price Point

Wells Fargo joined the bullish chorus, elevating its price target from $255 to $320 while reaffirming an Overweight recommendation. The firm’s analyst pointed to “asymmetric upside” linked to the Section 232 determination, suggesting a positive outcome could elevate domestic solar module pricing and generate substantial earnings growth.

This upgrade came on a day when options trading volume in FSLR was notably elevated at market open, indicating some market participants were positioning themselves ahead of the analyst action.

Broader market strength provided supportive backdrop. The Nasdaq advanced 1.1% while the S&P 500 climbed 0.8% during the session when Wells Fargo released its analysis.

The solar industry has experienced significant headwinds recently. The Zacks Solar sector had plummeted over 23% in the month preceding the Wells Fargo commentary. FSLR’s analyst-driven momentum represented a notable sentiment shift for the industry, albeit temporarily.

Wall Street consensus on the stock tilts decidedly positive. Among 37 analysts monitored by FactSet, 23 assign Buy or Overweight ratings, 11 recommend Hold, and two rate it Underweight. KeyBanc Capital Markets stands alone with a Sell recommendation.

Notwithstanding the recent upgrades, FSLR shares have declined by double-digit percentages since early June. The stock’s next significant movement likely hinges on the timing and substance of the forthcoming polysilicon tariff determination.

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