Solar Energy Stock Shoots to 11-Year Peak on Analyst Praise

Bank of America upgraded FSLR to a “buy”

First Solar, Inc. (NASDAQ:FSLR) is getting a boost today, last seen up 2.7% at $125, on an upgrade from Bank of America (BofA). The analyst lifted its rating on FSLR to “buy” from “neutral,” and raised its price target to $141 from $104, noting that the security could get even more out of the recently passed climate bill. BofA also noted that it did not initially price in the number of Inflation Reduction Act (IRA) credits that the company would accrue, which could lead to a “significant valuation uplift.” 

The security has already been outperforming the rest of the market, adding almost 40% in 2022, and nearly 30% in the past 12 months. The stock surged up the charts following a post-earnings bull gap it enjoyed in late-July, and today FSLR is surpassing its May 12, 11-year high of $123.12. 

There could be room for more bull notes down the line, too. Of the 14 in coverage, half consider FLSR a “hold” or worse. Meanwhile, the 12-month consensus price target of $113.81 sits at a 6.5% discount to last night’s close. 

For those looking to speculate on FSLR’s next move, they may want to do it with options. The equity’s Schaeffer’s volatility Index (SVI) of 44% sits in the relatively low 33rd percentile of its annual range. This implies that options traders are pricing in lower volatility expectations right now. Even better, the stock’s Schaeffer’s Volatility Scorecard (SVS) sits at 88 out of 100, meaning the stock has tended to exceed said volatility estimates.