Mizuho upgrades First Solar on ‘materially improved’ sales outlook

Mizuho upgraded First Solar (FSLR) to Outperform from Neutral with a price target of $259, up from $218. The company’s sales outlook post 2026 “has materially improved,” the analyst tells investors in a research note. Based on the firm’s channel checks, it sees a “better moat” for First Solar versus crystalline silicon competition in the U.S., saying other U.S. cell manufacturers are opting for the “expensive/inefficient” passivated emitter and rear cells due to the company’s hold on the more efficient tunnel oxide passivated contact technology. First Solar shares have likely underperformed year-to-date given negative sentiment around the 45X manufacturing tax credits surviving in the Republican administration, but even in Mizuho’s base case assuming 45X expires after 2026, there will be “less pain” for the company offset by tariffs, leading to better negotiating power in 2027, the analyst contends.