Truist lifts First Solar to Buy and raises target to $270

what happened

Truist Securities upgraded First Solar to Buy from Hold and raised its price target to $270 a share from $229. Dow Jones Newswires and Seeking Alpha reported the ratings action and comments from analyst Christopher Souther. First Solar shares gained 1.5% in Monday’s trading.

Truist expects pricing and demand conditions to strengthen into the 2030s after the Section 232 trade decision takes effect on December 4. The decision sets a minimum import price plus tariffs of $0.44/watt for crystalline silicon module imports. U.S. Series 7 capacity is sold out through 2028, while new bookings for the end of the decade now carry an upward bias from earlier expectations in the mid-30s/watt range.

The analyst also cited ITC and PTC credits for domestic content and 45X credits, which phase down to 75% in 2030 and zero by 2033. Truist sees margins in the mid-20% range excluding 45X at the end of the decade. Souther said free cash flow turned positive in 2025 and could rise from $308 million in 2024 to $2.5 billion in 2027 following a major capital-expenditure cycle.

why it matters

The revised rating and target highlight the expected impact of Section 232 tariffs, domestic-content incentives and stronger contracted pricing. Investors are also focused on First Solar’s projected free-cash-flow expansion through 2027.

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