By Senad Karaahmetovic
First Solar (NASDAQ:FSLR) shares are trading about 2.5% lower today after Evercore ISI analysts downgraded the stock to In Line from Outperform.
The analysts believe that the benefits of the Inflation Reduction Act (IRA) have largely skewed toward solar manufacturers and production tax credits (PTC). As far as First Solar is concerned, these benefits are “largely reflected in the current FSLR share price.”
“After we moved FSLR to Outperform and raised our price target, the stock move has quickly exceeded our increased PT for FSLR shares,” they said in a client note.
The analysts reminded investors that the capacity is largely sold out through 2025-2026 while current manufacturing volume expansion is already factored in.
“We are moving to In Line rated (from Outperform) following FSLR’s massive outperformance, especially relative to the residential installer companies,” the analysts added.
FSLR stock was downgraded yesterday at Bank of America for the same reason - positives seem to be priced in.
"Between the outperformance of the shares and weakness in global solar prices of late, the favorable drivers are largely embedded," the analysts wrote in a downgrade note.