First Solar Inc. advanced in premarket trading on Thursday after BMO Capital upgraded the solar manufacturer’s stock to Outperform from Market Perform, citing policy-driven tailwinds and an oversold correction.
BMO analyst Ameet Thakkar raised the price target to $263, reflecting expectations that U.S. module average selling prices will climb toward $0.43–$0.44 per watt over the coming years. The upgrade follows a recent selloff of roughly 16% in First Solar shares after the Biden administration’s Section 232 tariff announcements, which the analyst described as having overshot to the downside.
Thakkar also highlighted the potential impact of the Manufacturing in Partnership framework, which is expected to support higher pricing for domestically produced solar modules. The analyst noted that First Solar, a manufacturer of thin-film photovoltaic solar modules, now trades as the least expensive solar original equipment manufacturer in BMO’s coverage universe.
The firm’s valuation model projects an enterprise value to EBITDA (excluding production tax credits) of approximately 8.6 times for 2029, based on a multi-quarter booking window for volumes extending into 2029 and beyond. Margin headwinds are expected to persist into 2027, while long-term risks such as those posed by Crystal Sun were characterized as a "back-half-decade" concern.
First Solar shares rose 3.9% in premarket trading on Thursday. Tesla’s potential demand was also factored into BMO’s assessment, with a conservative assumption of a $0.38 average selling price for the automaker’s requirements.
