What Happened?
Shares of solar panel manufacturer First Solar (NASDAQ: FSLR) jumped 1.8% in the afternoon session after Truist Securities analyst Christopher Souther upgraded the stock to Buy. Truist analyst Christopher Souther lifted the price target from $229, implying approximately 52% upside from the prior close, in research covered by CNBC and StreetInsider. Souther raised 2029 U.S. module average selling price estimates by 17%, citing an improving pricing trajectory into the 2030s and a domestic utility-scale forecast averaging 44 gigawatts annually through 2035, per Investing.com. The upgrade follows a roughly 32% year-to-date decline that reset the stock's valuation, according to CNBC. In a note to clients, Souther observed that while domestic Series 7 capacity is sold out through 2028, new Section 232 anti-stockpiling restrictions on imported polysilicon, effective December 4, head off foreign supply gluts and allow First Solar to price uncommitted post-2028 volume higher.
After the initial pop, the shares cooled down to $180.10, up 1.3% from the previous close.
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What Is The Market Telling Us
First Solar’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock dropped 7.9% on the news that the 10-year Treasury yield jumped to 5.14%, reaching levels last seen in 2007 and raising borrowing costs across the economy. U.S. stocks fell early Thursday, according to the Associated Press, as surging Treasury yields and rebounding energy prices weighed on financial markets. A Treasury yield is the return investors earn for lending money to the U.S. government. The 10-year yield is closely watched because it serves as a benchmark for many other borrowing costs, including mortgages and corporate loans. When it rises, it becomes more expensive for households and businesses to borrow, which can slow spending and investment. Higher yields can also make stocks look less attractive. When investors can earn a relatively safe return of more than 5% from government bonds, some may choose to move money out of riskier assets such as equities. Companies that depend on borrowing to fund growth, or whose value is based heavily on expected future profits, often feel this pressure most. Rebounding energy prices added to the strain. Higher fuel costs can raise expenses for businesses and consumers and may keep inflation elevated, which could keep upward pressure on interest rates. Taken together, the jump in yields to their highest level in roughly two decades and the rise in energy prices created a difficult backdrop for stocks across the sector, with many companies moving lower together.
First Solar is down 34.4% since the beginning of the year, and at $180.10 per share, it is trading 43.4% below its 52-week high of $318.25 from June 2026. Despite the year-to-date decline, investors who bought $1,000 worth of First Solar’s shares 5 years ago would now be looking at an investment worth $1,711.
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