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First Solar (FSLR) shares opened in the green on Tuesday after senior Baird analyst Ben Kallo issued a bullish note in favor of the solar panel manufacturer.
Kallo upgraded FSLR this morning to “Outperform” and raised his price objective rather sharply to $318, signaling potential upside of roughly 30% from current levels.
His bullish call brings a much-needed reprieve to First Solar stock, which is currently down more than 20% versus its year-to-date high.
What Made Baird Upgrade First Solar Stock?
Baird’s upgrade of FSLR stock hinges on the elimination of a major regulatory headwind: the removal of Section 232 tariff uncertainty.
According to Kallo, now that the company is free from that overhang, the investment thesis is much simpler and the path to a resurgence in longer-term booking activity appears rather clear.
With regulatory clarity restored, utility-scale customers are positioned to sign contracts further out, particularly for the 2029–2030 delivery timeframe.
Moreover, Baird expects this shift to support higher average selling prices (ASPs), strengthening First Solar’s margin profile as demand for domestic, “high-efficiency” solar modules continues to outpace available supply across the U.S. market.
FSLR Shares Are Attractively Priced
In addition to tariff tailwinds, Kallo highlighted First Solar’s favorable positioning within a robust utility-scale solar market.
In his research report, the analyst said financial estimates for the solar firm have been recalibrated to more realistic levels, setting a cleaner bar for future operational beats.
FSLR maintains a rock-solid balance sheet with more cash than debt, alongside ongoing tax credit tailwinds under Section 45X.
At a modest price-to-earnings (P/E) multiple of about 14x, First Solar shares present an attractive risk-reward profile, Kallo added.
All in all, Baird contends that as earnings visibility improves and macro execution stays on track, the clean energy firm is primed to re-rate significantly higher in the back half of 2026.
What’s the Consensus Rating on First Solar
Note that Baird isn’t the only Wall Street firm that is bullish on FSLR shares for the next 12 months.
The consensus rating on First Solar sits at “Moderate Buy” currently, with price targets as high as $300.
