First Solar Jumps 3.9% on BMO Upgrade

First Solar Inc (NASDAQ:FSLR) shares increased 3.9% in pre‑market trading on Thursday after BMO Capital Markets upgraded the stock from “Market Perform” to “Outperform” and set a new price target of $263.

BMO analyst Ameet Thakkar explained that the roughly 16% sell‑off that followed the U.S. Section 232 tariff announcements had been excessive. He said the tariff and the Manufacturing in Partnership framework are expected to lift average U.S. solar module selling prices to between $0.43 and $0.44 per watt. This price uplift should give First Solar a multi‑quarter window to secure volume bookings through 2029 and beyond, even though margin pressures are projected to continue into 2027.

Thakkar also noted that Tesla’s required average selling price is at or above the firm’s conservative $0.38 assumption during its ramp, implying that the “Crystal Sun” project poses a risk in the latter half of the decade. He highlighted that First Solar trades at approximately 8.6 times the estimated 2029 enterprise‑value‑to‑EBITDA multiple (excluding production tax credits), making it the least‑expensive solar original equipment manufacturer in BMO’s coverage universe.

The upgrade reflects BMO’s view that the recent tariff environment, while initially disruptive, will ultimately improve pricing dynamics for First Solar’s thin‑film photovoltaic modules.