First Solar a Big Beneficiary of Dem’s New Legislation: Analysts

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AAmong clean energy companies set to benefit from a major spending package due to be introduced in the House this week, analysts said First Solar (US:FSLR) stands out given its scale and energy services alternatives.

First Solar, which makes solar panels and other photovoltaic equipment, is set to receive a significant share of the windfall fueled by the legislation.

The Center for American Progress, a nonpartisan think tank, said the bill allocates $369 billion over ten years to support clean energy deployment, domestic manufacturing and pollution reduction.

JPMorgan Chase (US: JPM) analyst Mark Strouse estimates the bill’s manufacturing credits will add $931 to First Solar’s 2024 net income. Strouse upgraded FSLR stock from “overweight” to “neutral”.

Guggenheim analysts have raised First Solar from “neutral” to a “buy” rating. Additionally, Piper Sandler (US:PIPR) raised her price target for the company’s stock to $120 from $90, calling it overweight.

Senate Democrats united after a series of false starts and eleventh-hour negotiations, eventually passing the Cut Inflation Act. It must be approved by the House before it can be sent to the White House to be signed by President Biden. A vote in the House is expected this week. The bill does not offer the sweeping changes President Joe Biden wanted in his original Build Back Better plan, but remains focused on climate, health care and taxes.

On July 28, First Solar reported second-quarter earnings of 52 cents per share on revenue of $621 million, beating estimates for both, according to consensus estimates from analysts at Zacks Investment Research, which forecast earnings per share of 30 cents and rev nine of $598.8 million.

However, on a cautionary note, an AP report mentioned that “First Solar expects a full-year loss of 25 cents per share, with revenue between $2.55 billion and $2.5 billion. .8 billion dollars”.

By Joshua Enomoto for Due.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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