bombermoon/iStock via Getty Images
First Solar (NASDAQ: FSLR) jumped to a new yearly high of +9.2% on Monday after the US Senate passed the climate and energy bill over the weekend, which Democrats called the biggest investment in the fight against climate change that the USA ever did, they did.
The stock also received two analyst upgrades: Guggenheim upgraded First Solar ( FSLR ) to Buy from Neutral with a price target of $135, and JP Morgan upgraded it from Neutral to Overweight with a price target of $126, from $83.
“Of all the names in our coverage, we believe that First Solar appears poised to benefit the most from the anti-inflationary legislation passed by the Senate,” wrote Joseph Osha of Guggenheim.
Though First Solar (FSLR) is up more than 70% since July 15, Osha believes “investors haven’t fully understood how transformative an IRA can be for FSLR’s business.”
The most direct impact of climate legislation on stocks will be a 30% extension of the investment tax credit through 2024, and a home content provider could claim a 40% credit, with the “most interesting impact” coming in the form of in-house production tax credits , according to Osha.
ETFs: (TAN), (FAN), (ICLN), (QCLN), (PBW), (PBD), (ACES), (CNRG), (SMOG), (ERTH)
Maxeon Solar Technologies (MAXN) was also initiated with an outperform rating and a price target of $22 with Northland seeing the stock as an “attractive way to play against headwinds” expected from the climate bill.
Green energy stocks are mostly trading higher following passage of Senate climate bill — although some have retreated from early highs: (FCEL) +8.4%, (CLNE) +7.4%, (STEM) +6.5%, (RUN) +6.3%, (TPIC) +5.7%, (BE) +5.3%, (ARRY) +4.6%, (PLUG) +3.9%, (BLDP) +3 .5%, (CEG) +3.1%, (NOVA) +3%.
First Solar ( FSLR ) was upgraded to Neutral from a sell equivalent rating by Bank of America last week.