What happened
While markets look like they're going to finish the week higher than where they began, First Solar (FSLR -2.09%) is poised to close sharply higher. Between the building belief that the climate bill will successfully move out of the House of Representatives and several positive takes on the stock from analysts, investors are scooping up shares of the solar specialist over the past few days.
As of 1:11 p.m. ET today, shares of First Solar have risen 17% since the market's close last Friday.
So what
While momentum for the climate bill had stalled earlier this summer, the legislation overcame a significant hurdle last weekend, gaining Senate approval and moving to the House. The Inflation Reduction Act provides $369 in funding to shore up America's energy security, meaning solar power companies, like First Solar, will surely benefit should the bill become law.
On the company's recent Q2 2022 conference call, for example, management discussed its enthusiasm for the bill's passage. Alex Bradley, First Solar's CFO, stated, "We're encouraged by the Inflation Reduction Act proposed legislation and are currently reviewing this development and its potential impact on our business and capacity expansion plans."
Some analyst attention toward the stock also stoked investors' excitement, including:
- On Monday, JPMorgan upgraded the stock to overweight from neutral and lifted the price target to $126 from $83.
- Also on Monday, Guggenheim upgraded the stock to buy from neutral, setting a $135 price target.
- On Thursday, KeyBanc upgraded shares to overweight from sector weight and set a $145 price target.
Now what
Should the Inflation Reduction Act receive approval from the House and make it to President Biden for his signature, it will surely be a positive catalyst for renewable energy-oriented companies like First Solar. It's no wonder, therefore, that so many are clicking the buy button this week on shares of First Solar, one of the leading solar stocks available to investors.
