Baird Upgrades First Solar as Tariff Clarity Boosts Bookings

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: August 11, 2026

Key Moments

Baird upgraded First Solar to Outperform from Neutral and raised its price target to $318 from $205.
The firm said the Section 232 tariff outcome removes a major overhang and should enable bookings to resume at higher ASPs.
Baird extended its forecasts through 2030, citing ongoing utility-scale solar strength and First Solar’s capacity to contract at higher prices.

Upgrade Driven by Tariff Clarity

Investing.com – Baird raised its rating on First Solar, Inc. (NASDAQ:FSLR) to Outperform from Neutral in a report on Tuesday, saying a recent tariff decision has eliminated a critical source of uncertainty and should clear the way for new contract activity.

Analyst Ben Kallo increased the firm’s price target on the stock to $318 from $205, noting that Baird had effectively stayed “on the sidelines” for nearly six months before the upgrade.

Section 232 Outcome Seen as Key Catalyst

Kallo highlighted several drivers behind the call, including a robust utility-scale solar market, what Baird views as more appropriately calibrated estimates, and the potential for First Solar to more clearly outline its capital allocation plans.

However, he emphasized that the Section 232 tariff resolution is central to the recommendation, stating that the outcome “removes an overhang for bookings to resume (and at higher ASPs).” Baird characterized the tariff decision as “a clearing event for FSLR,” describing it as a long-anticipated catalyst that should allow the company and its customers “to resume booking new business.”

The firm said it believes the executive order provides needed clarity on pricing levels for new module bookings and removes an overhang on the shares. Baird expects this to help drive bookings for the 2029-2030 period.

Improving Visibility and Policy Backdrop

Kallo commented that a previously “complicated story is becoming more straightforward,” with policy uncertainties such as Section 232 now largely behind the company, which Baird argues makes the stock easier to own.

The analyst also anticipates that the strength in utility-scale solar will persist into the next decade, positioning First Solar to benefit as “the largest pure-play market cap solar manufacturer.”

Next Drivers: Pricing, Capacity, and Capital Deployment

Baird identified the opportunity to lock in contracts at higher average selling prices as the next key catalyst for the shares. The firm also noted that capital deployment will become a central focus as First Solar moves out of what it called a capex-heavy investment phase.

To capture what it sees as the company’s longer-term earnings potential, Baird extended its financial estimates for First Solar through 2030.