Latest news with #JonWindham
Business Insider
2 days ago
- Business
- Business Insider
What's Behind the Recent Surge in First Solar Stock (FSLR)?
First Solar's (FSLR) stock jumped 9.7% on Monday, reaching its highest level in 10 months. The rally came as four-star-rated analyst Jon Windham at UBS named FSLR stock a top pick following new IRS guidance that preserved key 2030 tax credits for the solar industry. This development has eased the uncertainty that had weighed on the sector for over a year. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The latest surge builds on momentum from earlier this month, when First Solar reported its Q2 results, beating expectations. Year-to-date, FSLR stock has gained 25%. Here's What Happened The U.S. Treasury Department and IRS issued new rules on clean energy tax credits that turned out to be more favorable than investors expected. The updated guidance explains how solar and wind projects can qualify for federal tax credits. Meanwhile, the new rule is especially favorable for large utility-scale projects, a key market for First Solar. For these projects, the rules now apply a 'physical work test' to determine when construction begins, replacing older and stricter requirements. Overall, wind and solar developers have traditionally depended on federal tax credits to offset the high upfront costs of clean energy projects. UBS Stays Bullish on FSLR After the favorable guidance, UBS named First Solar a top pick, pointing to lower policy risks and strong earnings growth potential. Windham noted that demand for U.S. utility-scale solar projects is outstripping supply, driven partly by the rise of AI data centers aiming for 100% clean energy. He added that this trend could boost volume growth and strengthen demand certainty for the U.S. solar industry. At the same time, domestic hardware suppliers stand to benefit from tax credit support and tariff protections. As a result, Windham projects First Solar's adjusted earnings to rise to $32 per share by 2027, up from $12 last year. They also see room for upward earnings revisions in 2026 and beyond, supported by accretive capital deployment. Additionally, UBS highlighted Nextracker (NXT) and Sunrun (RUN) as preferred picks in the current market environment. Is FSLR a Good Stock to Buy Now? Turning to Wall Street, FSLR stock has a Strong Buy consensus rating based on 15 Buys, one Hold, and one Sell assigned in the last three months. Also, the average First Solar stock price target of $217.85 implies a 0.67% downside from current levels.
Yahoo
3 days ago
- Business
- Yahoo
First Solar Surges 10% After UBS Names it a 'Top Pick'
Aug 19 - First Solar jumped about 10% on Monday after UBS named the solar-panel maker a Top Pick following fresh IRS guidance that largely preserves tax credits through 2030. Warning! GuruFocus has detected 7 Warning Signs with FSLR. The upgrade pushed First Solar (NASDAQ:FSLR) to its highest level in roughly 10 months and cleared a major policy uncertainty for U.S. utility-scale projects. UBS analyst Jon Windham says demand now outpaces supply, a gap made worse by the rapid build-out of AI data centers that aim for 100% clean energy, a steady source of large-scale demand. UBS projects First Solar's adjusted earnings could reach roughly $32 a share by 2027, up from about $12 last year, and expects potential upward revisions as the company deploys capital and brings added finishing-line capacity online. The bank also flagged Nextracker (NASDAQ:NXT) and Sunrun (NASDAQ:RUN) as preferred names in the sector. Tariff protections and domestic tax-credit support further help U.S. hardware suppliers, although execution and timing risks remain. Overall, the IRS guidance gives developers and component makers clearer visibility for near-term project planning. This article first appeared on GuruFocus.
CNBC
30-05-2025
- Business
- CNBC
UBS says this solar stock can rally 75% even as U.S. budget bill poses risks to clean energy
Sunrun can surge from here even as a new U.S. budget bill poses a risk to the clean energy sector, according to UBS. Analyst Jon Windham kept his buy rating on the solar company. He did cut his price target to $12 from $17, but that still implies the stock could still gain 75% from Thursday's close. Sunrun shares have plunged nearly 26% this year and more than 52% over the past year, as traders ditch clean energy names under the Trump administration. The Invesco Solar ETF (TAN) has dropped more than 3% in 2025 and 13% in the past six months. The latest headwind for the sector comes after the U.S. House of Representatives on May 22 passed the "One Big Beautiful Bill Act," which proposes to eliminate the 30% Investment Tax Credit by the end of December. The bill has allowed homeowners to reduce their electricity costs by installing solar panels and battery storage systems. "Our lower target multiple reflects the overall intent of the House to seemingly remove all tax credits regarding residential solar and our relatively negative outlook on the Senate's willingness to preserve the credits compared to programs like the 45x manufacturing credit," Windham wrote in a Friday note to clients. RUN 1Y mountain Sunrun stock performance. But according to the analyst, Sunrun could remain resilient in the face of these cuts. If the residential tax credits are fully slashed, he said Sunrun could survive regulatory changes by structuring its Power Purchase Agreement options, getting more state-level policy support and transitioning to end markets such as commercial and industrial and community solar. He also noted that the company has strong assets. "Our estimates are unchanged as there is the potential for revisions in the U.S. Senate and possible that a final bill does not pass," Windham wrote. "We maintain our buy rating ... based on RUN's underlying $2.6bn portfolio of contracted net earning assets. In addition, we see potential upside scenarios beyond the U.S. budget bill." Wall Street remains split on Sunrun. Of the 25 analysts covering the stock, on rates it a strong buy, while 10 rate it a buy and 12 give it a hold, per LSEG.
Yahoo
17-05-2025
- Business
- Yahoo
Fluence Energy, Inc. (FLNC) was Upgraded by Analysts This Week. Here is Why.
Fluence Energy, Inc. (NASDAQ:FLNC) was upgraded by not one, but two analysts this week. Let's take a look at why that happened. Fluence Energy, Inc. (NASDAQ:FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. Fluence Energy, Inc. (NASDAQ:FLNC) was upgraded by UBS' Jon Windham this week, who raised its price target from $4.5 to $6, while retaining its Neutral rating. The firm's bullish take on the stock was based chiefly on the trade truce between the US and China, with the belief that companies that factored high tariffs into their guidance might stand to benefit. Fluence received another upgrade this week, from RBC Capital's Christopher Dendrinos, who raised the energy company's price target from $6 per share to $7, while also maintaining a Neutral recommendation. It must also be noted that Fluence Energy, Inc. (NASDAQ:FLNC) reported its Q2 2025 results last week, beating both EPS and revenue estimates. However, the company reduced its guidance for the second quarter in a row, largely due to the economic uncertainty caused by President Trump's tariffs. Given the positive investor sentiment following the aforementioned developments, the share price of Fluence Energy, Inc. (NASDAQ:FLNC) has surged by more than 18% over the last week. While we acknowledge the potential of FLNC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FLNC and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and 10 Most Undervalued Energy Stocks According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
