First Solar Stock Jumps 3% After Citi Upgrade, Retail Sentiment Turns Bullish Ahead Of Earnings

Shares of First Solar Inc ($FSLR)  jumped 3% on Tuesday after Citi upgraded the stock to ‘Buy’ from ‘Neutral’ ahead of its third-quarter earnings, due next week.

The brokerage raised its price target on the stock to $254 from $200 on Monday after the closing bell.

According to the brokerage, the solar panel manufacturer will thrive regardless of whether Republican Presidential candidate Donald Trump or Democratic candidate Kamala Harris wins the upcoming U.S. Election. 

“In a Democratic win, we would expect a sharp recovery in FSLR,” Citi said in its research note. “In a Trump victory, we would expect the stock to pull back temporarily but recover as more protectionist policies and tariffs are announced while the IRA remains in place.”

The Inflation Reduction Act (IRA) provides large tax benefits to encourage the use of solar energy. 

Citi also expects that a dividend announcement could be on the horizon early next year, contingent on clarity regarding the continued implementation of the IRA. This could “provide a unique distinction for the company in the renewables space,” the brokerage said. First Solar doesn’t currently pay a dividend.

Retail sentiment on Stocktwits has soared into the ‘bullish’ (60/100) territory from being ‘bearish’ a day ago. 

The company is scheduled to report third-quarter earnings on Oct. 29 with Wall Street projecting earnings per share (EPS) of $3.11 and revenue of $1.07 billion, according to Stocktwits data.

Shares of First Solar have registered gains of 18% so far in 2024 despite falling 19% over the past month. 

For updates and corrections email newsroom@stocktwits.com.

Read More: General Motors Stock Climbs After Earnings Beat, Raised Guidance: Retail Sentiment Still Bearish

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