🚀 First Solar Stock (FSLR) Explodes After UBS Crowns It Top Pick - Solar Sector Surges

Wall Street's latest love affair just sent solar stocks into orbit. UBS analysts dropped the equivalent of a financial mic this morning, slapping their coveted "Top Pick" rating on First Solar—and the market responded with pure rocket fuel.

THE CATALYST

When a bulge-bracket bank like UBS anoints a stock, traders listen. The endorsement triggered algorithmic buying frenzies and human FOMO in equal measure. Suddenly every portfolio manager remembers they're supposed to care about climate tech—at least until quarterly reports drop.

SECTOR-WIDE AFTERSHOCKS

First Solar's surge didn't happen in vacuum. Rivals caught the glow-up too, proving once again that Wall Street's attention span operates like a group of golden retrievers spotting a squirrel. The entire solar basket lit up green while traditional energy stocks did their best impression of a dial-up modem.

THE UNSPOKEN CALCULUS

Let's be real—this isn't about saving the planet. It's about saving face while chasing returns. Institutions need ESG-friendly tickers to placate board committees, and suddenly a solar manufacturer becomes the prom queen everyone fights over. The irony? Most analysts pushing renewables still fly private.

Where's the ceiling? Ask the algo traders. But for today, solar's not just clean energy—it's clean money.

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The latest surge builds on momentum from earlier this month, when First Solar reported its Q2 results, beating expectations. Year-to-date, FSLR stock has gained 25%.

Here’s What Happened

The U.S. Treasury Department and IRS issued new rules on clean energy tax credits that turned out to be more favorable than investors expected. The updated guidance explains how solar and wind projects can qualify for federal tax credits. Meanwhile, the new rule is especially favorable for large utility-scale projects, a key market for First Solar. Under these projects, the rules now apply a ‘physical work test’ to determine when construction begins, replacing older and stricter requirements.

Overall, wind and solar developers have traditionally depended on federal tax credits to offset the high upfront costs of clean energy projects.

UBS Stays Bullish on FSLR

After the favorable guidance, UBS named First Solar a top pick, pointing to lower policy risks and strong earnings growth potential. Windham noted that demand for U.S. utility-scale solar projects is outstripping supply, driven partly by the rise of AI data centers aiming for 100% clean energy. They added that this trend could boost volume growth and strengthen demand certainty for the U.S. solar industry. At the same time, domestic hardware suppliers stand to benefit from tax credit support and tariff protections.

As a result, Windham projects First Solar’s adjusted earnings to rise to $32 per share by 2027, up from $12 last year. They also see room for upward earnings revisions in 2026 and beyond, supported by accretive capital deployment.

Additionally, UBS highlighted Nextracker (NXT) and Sunrun (RUN) as preferred picks in the current market environment.

Is FSLR a Good Stock to Buy Now?

Turning to Wall Street, FSLR stock has a Strong Buy consensus rating based on 15 Buys, one Hold, and one Sell assigned in the last three months. Also, the average First Solar stock price target of $217.85 implies a 0.67% downside from current levels.