Analyst: First Solar Stock Could Rally 30%

FSLR hit an 11-year high out of the gate this morning

Deputy Editor
Sep 8, 2022 at 10:08 AM
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First Solar, Inc. (NASDAQ:FSLR) was still last seen 3.1% higher to trade at $138.93 following a double-upgrade at Goldman Sachs to "buy" from "sell." The analyst also added hefty price-target hike to $172 from $60, noting that the solar concern could rally 30% on immediate tailwinds from the passage of the Inflation Reduction Act legislation.

Out of the gate this morning, FSLR nabbed an 11-year high of $139.67. The shares have managed to scale the charts in recent months, beginning with a late-July post-earnings bull gap and helped along by their ascending 10-day moving average. First Solar stock is heading for its seventh weekly win in eight, and thanks to a 102% gain this quarter, has amassed a 58% year-to-date lead. 

Coming into today, the brokerage bunch was split on the equity. Of the 15 brokerages covering the stock, six still considered the equity a "hold" or worse, while the 12-month consensus price target of $125.90 is a 9% discount to its current perch, which leaves FSLR open to additional bull notes.

Options traders are bombarding First Solar stock in response to the analyst's note, with 17,000 calls already crossing the tape -- seven times the intraday average. The most popular contract by far is the weekly 9/9 140-strike call, where new positions are being opened.

For those looking to speculate on FSLR's next move, they may want to do it with options. The stock's Schaeffer's Volatility Scorecard (SVS) sits at 91 out of 100, meaning the stock has tended to exceed options traders' volatility estimates. 

 

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