First solar energy (NASDAQ: FSLR) the stock rises. According to data from S&P Global Market Intelligence, the solar energy specialist’s share price ended the week 40.1% higher than last Friday’s market close.
The price rose on positive analyst coverage and excitement about the company’s ability to capitalize on the artificial intelligence (AI) revolution. The stock also gained ground on news that China’s top solar regulator was in favor of easing downward price pressure from intense competition.
Wall Street is warming up to First Solar
First Solar shares hit a 10-year high this week on news that China’s top solar regulator urged suppliers to move away from price wars. The solar stock also received significant price target increases from analysts UBS, Piper SandlerAnd JPMorgan Chase.
Citing the demand for electricity created by the rise of artificial intelligence, UBS has raised its one-year price target for First Solar shares from $252 per share to $270 per share. The company expects dramatic earnings growth and expects annual earnings per share to rise from $7.74 last year to $36.74 per share in 2027.
JPMorgan analysts also raised their one-year target for the stock from $240 per share to $262 per share. Meanwhile, Piper Sandler raised its price target for the stock from $195 per share to $219 per share on a favorable outlook for average selling prices.
What comes next for First Solar stock?
First Solar now has a market cap of roughly $29.6 billion and is valued at about 6.6 times this year’s expected revenue and 20 times this year’s expected earnings. Meanwhile, the company posted revenue of about $794 million in the first quarter of this year – down from about $1.16 billion in the fourth quarter of last year, but up from the $548.3 million in revenue that recorded it in the first quarter of last year.
First Solar’s business performance will likely continue to be driven by the macroeconomic backdrop, shifts in the energy sector and the regulatory environment. On the other hand, the company has plenty of long-term growth potential, and the recent attention its stock is receiving as an AI play opens the door for a sustained rally in the short term.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool holds and recommends positions in JPMorgan Chase. The Motley Fool recommends First Solar. The Motley Fool has a disclosure policy.
Why Early Solar Stocks Soared This Week was originally published by The Motley Fool
