Why First Solar’s Stock Price Will Reach $1,000 by 2030

The demand for solar energy has been rapidly increasing in the U.S. and Europe, and First Solar (FSLR) is positioned to benefit tremendously from the trend. With the U.S. government’s tremendous subsidies and growing demand for solar energy to power electric vehicles, it is highly likely that FSLR stock price will jump more than five times to $1,000 by 2030.

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Here are the top four reasons why First Solar stock will reach $600 by March of 2025.

The retirement of many fossil fuel plants will create an electricity deficit of 10 gigawatts in 2030, according to PJM, which operates an electricity grid serving over 65 million Americans. This issue will likely be faced by most grid operators in Europe and the U.S. The most obvious solution is for electric utilities to increase their purchases of solar energy, which has become cheap and enjoys wide public and regulatory support. This increased demand for solar energy will boost the top and bottom lines of First Solar and its peers.

One of the top investors on Wall Street, Steve Cohen, purchased significant amounts of the stocks of two leading solar energy companies last quarter. As a result, the Street is finally realizing that this sector is booming and well-positioned to continue to do so for the foreseeable future.

Since Cohen’s purchases were disclosed last month, solar stocks have been on a tear.

First Solar’s Q4 cash from operations came in at $795.2 million last quarter, up from $34.5 million during the same period a year earlier. The solar module maker’s top line climbed 10% year-over-year to $1 billion. Its 2023 net income guidance of $7-$8 is significantly above analysts’ average estimate of $5.56. These results demonstrate that the company is benefiting tremendously and will continue to do so from the massive demand for its solar modules and from government subsidies.

First Solar has two solar plants in Ohio and will receive extensive tax breaks passed by Congress last year for the production of solar products in America. Meanwhile, First Solar’s U.S. customers are eligible to deduct 30% of the funds they spend on solar projects from their tax bills through 2032, thanks to provisions passed by Congress.

In conclusion,

First Solar is well-positioned to benefit from the growing demand for solar energy in the U.S. and Europe. With government subsidies and increasing demand for solar energy, FSLR stock price is likely to hit $1,000 by 2030. Investors should consider adding First Solar to their portfolios to take advantage of this trend.

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Originally published at https://jitsastoks.com on March 5, 2023.