FSLR Stock Heads For Its Worst Week In Over A Month — Roth Says US Polysilicon Crackdown Could Provide A Tailwind

• Roth called current FSLR levels a “very attractive entry point” despite concerns over weaker-than-expected solar-module pricing.
• The firm also sees T1 Energy and Toyo as potential beneficiaries.
• New U.S. rules target polysilicon stockpiling, with Roth saying more than 20 importer licenses have already been revoked.          

First Solar (FSLR) was on investors’ radar on Friday after Roth Capital said a crackdown on polysilicon stockpiling could tighten supplies and support higher pricing for domestic solar manufacturers.

The call comes after FSLR shares tumbled nearly 11% on Thursday and headed for their biggest weekly loss in six weeks. Roth attributed the selloff to concerns that solar-module pricing may not be as strong as previously expected.

However, the brokerage sees the recent weakness as a buying opportunity, calling current levels a “very attractive entry point.”

At the time of writing, FSLR stock was up 3.5%

Roth Says FLSR Could Benefit From Supply Tailwinds

Earlier this week, the Commerce Department’s Bureau of Industry and Security implemented a temporary rule to prevent companies from stockpiling polysilicon and related products before new Section 232 import measures take effect on December 4. The rule allows the government to restrict companies that import significantly more polysilicon than their historical levels, while new importers are subject to weekly limits.

The move follows President Donald Trump’s August proclamation imposing minimum import prices on polysilicon, wafers, solar cells, and modules, as well as a 15% tariff on covered polysilicon derivatives beginning in December.

Roth said its channel checks showed imports had increased more than expected and that it learned more than 20 importer licenses had already been revoked. The firm expects stricter enforcement to reduce stockpiling, restrict supply and ultimately support higher U.S. pricing.

The firm sees First Solar, T1 Energy (TE) and Toyo (TOYO) as potential beneficiaries.

FSLR’s Mixed Q2

First Solar reported a mixed second quarter. While revenue fell 4% to $1.06 billion, partly due to customer contract terminations, earnings rose 23% to $3.92 per share.

The company also maintained its full-year outlook, forecasting $4.9 billion to $5.2 billion in sales and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $2.6 billion to $2.8 billion. The company ended June with a contracted backlog of 45.1 GW extending through 2030.

Retail Says FSLR Is ‘Severely Undervalued’

Retail sentiment surrounding FSLR turned ‘neutral’ from ‘bearish’ over the past 24 hours.

One user said the stock was “way oversold.”

Another user called it “severely undervalued.”

The stock is down 20% so far this year.

Also read: Tesla’s Optimus Reportedly Hits Production Snags — StoneX Stays Bullish Ahead Of Q3 Vehicle Deliveries

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