First Solar Earns New Buy Rating Amid ‘American-Made Moat’

First Solar has recently received a new Buy rating from Truist, which highlights the company’s strong competitive position thanks to its “American-made moat,” regarded as a significant differentiator.

Truist analysts have established a price target of $300 for the solar module manufacturer, pointing to its innovative thin-film Cadmium Telluride (CdTe) solar modules and its unique U.S. manufacturing capabilities as key strengths.

According to Truist, First Solar is dominant in the U.S. utility-scale market, supported by its differentiated technology and substantial domestic content, both of which enhance its competitive edge. The firm stated, “We believe FSLR’s unmatched U.S. manufacturing footprint, leading domestic content, and supply reliability will continue to protect the company’s competitive moat.”

Furthermore, ongoing investments in research and development (R&D) are expected to keep First Solar ahead of its competitors. The company intends to allocate about $4 billion between 2024 and 2026 to advance its technology and construct a new R&D facility. During this time, its R&D expenditure is expected to reach $640 million, which Truist believes will be crucial for First Solar’s leadership as it aims to enhance module performance and develop next-generation technologies.

Truist also noted that First Solar has a backlog of around 76GW, with orders extending to 2030, providing stability amid market volatility. “We see FSLR as in a prime position to maintain meaningful growth despite near-term utility-scale market volatility,” the analysts remarked.

While competition in U.S. solar manufacturing is increasing, Truist is confident that First Solar’s cost-efficient processes and robust market position will allow it to flourish. The firm concludes that First Solar is well-equipped to take advantage of ongoing geopolitical tensions and the push for domestic manufacturing.