Marc O. Schmidt column: First Solar wants to really take off now | news

At the beginning of the New Year, an interesting political spectacle took place in Washington. The Republicans narrowly secured a majority in the House of Representatives in November’s midterm elections.

Kevin McCarthy wanted to be elected speaker, but some of his party colleagues refused to support him. This meant that, for the first time in 100 years, a candidate failed to garner the votes needed to be elected to the third most important office in the United States on the first ballot.

Despite the quarrels within their own ranks, the Republicans will make life more difficult for President Joe Biden and block legislative projects. Especially when it comes to promoting renewable energies. In this respect, however, the Democrats had already had a great success last year. To the delight of First Solar (NASDAQ: FIRST SOLAR) A0LEKM / ISIN: US3364331070) .

Starke Performance

The S&P 500 Index closed the 2022 trading year down around 19 percent. However, investors with many stocks were also able to achieve good returns despite the difficult overall market environment. In addition to oil and gas stocks, First Solar was also at the top of the list of winners.

The share of the photovoltaic specialist, which is listed on the Nasdaq technology exchange, was able to achieve a price increase of almost 72 percent over the year as a whole. The passing of “The Inflation Reduction Act” (IRA) was also responsible for this.

Even before his election, Joe Biden had announced that he wanted to strengthen climate protection. In addition, renewable energies should be further strengthened in the USA. The solar industry in particular should benefit.

air upward

Back in late September, analysts at Evercore ISI said the IRA was a game changer for solar. As such, the law, with its long-lasting and broadly defined (and expanded) subsidies and transferable tax credits, would provide solar (and other renewable energy) developers and investors with security never seen before in the United States.

KeyBanc is also optimistic about First Solar’s prospects given the passage of the IRA. In November, the price target for First Solar stock was raised to $175.00. The reason for this is the assumption that the paper would bring further potential, since the positive effects of the IRA have not yet been fully priced in despite the good price development.

Important decision

While the IRA could lead to a foreclosure of the US economy in the field of renewable energies and thus to a dispute with the EU, it provides planning security for companies such as First Solar.

Therefore, the company has now decided on the state of Alabama to set up the fourth production site for solar panels in the USA. More than $1 billion is planned to be invested, while production is slated to begin in 2025.


Stocks of companies like First Solar don’t just benefit from legislation like the Inflation Reduction Act. The importance of renewable energies has been increasing for many years. In this country also because in this way one can make oneself even better independent of Russian energy supplies. Accordingly, the First Solar share should also bring further potential, although the paper was already one of the top performers in the S&P 500 index last year.

As an alternative to a direct investment in the First Solar share, corresponding share baskets with a focus on renewable energies can also be considered. One such is the Save the World Index. In addition to the photovoltaic specialist First Solar, wind turbine manufacturers and fuel cell manufacturers are also represented in this index. It can be invested by investors via the index certificate on the Save the World Index (WKN: DA0AAR / ISIN: DE000DA0AAR8) from Morgan Stanley.

The post First Solar wants to really take off now first appeared on marketINSIGHTS.
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