Is it too late to buy First Solar stock?

First Solar Inc (NASDAQ: FSLR) is up roughly 15% on Wednesday after a UBS analyst issued a bullish on note in its favour.

First Solar stock does not lack upside yet

Jon Windham raised its price objective on $FSLR this morning to $270 which translates to another 10% upside on top of today’s surge.

The analyst is bullish on First Solar stock as it’s an “overlooked, direct beneficiary of increasing AI-driven electricity demand”.  

Earlier this month, the solar panels manufacturer came in well ahead of Street estimates for its first quarter as sales climbed about 45% on a year-over-year basis.

UBS analysts expect the Nasdaq-listed firm to increase its earnings by a whopping 374% to $36.74 a share by 2027. First Solar shares are already up more than 70% for the year at writing.

$FSLR is a beneficiary of Biden’s IRA

Jon Windham expects First Solar to materially benefit from tax relief related to the Inflation Reduction Act particularly now that the United States has imposed new tariffs on China.

He recommends owning shares of the solar company as it does not rely on other suppliers for much more than glass and a few raw materials. $FSLR, therefore, can accelerate production capacity at a rate far better than its rivals, the analyst noted.

Windham expects the $26 billion company based out of Tempe, Arizona to more than triple its production capacity to 13.1 gigawatts by 2030. His research note on First Solar stock also reads:

“$FSLR is thought of as a de-risked product compared to ever-expanding U.S. tariff cases imports face. It’s also a hedge against potential weakness in sustainability of Chinese silicon based solar supply chain.”

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