Shares of First Solar (FSLR) climbed nearly 6% on Monday after a bullish Wall Street note said the solar manufacturer could receive a significant boost from a pending decision on tariffs on imported polysilicon.

Wells Fargo raised its price target on the stock to $320 from $255 while maintaining an ‘Overweight’ rating, according to The Fly. This represents a near 36% upside potential from current levels.

hit its all-time high of $320.95 last month.

FSLR To Benefit If US Eases Restrictions On Solar Panel Raw Material

Wells Fargo said its revised outlook reflects the potential outcome of the U.S. Department of Commerce’s Section 232 investigation into imported polysilicon, a material essential for manufacturing solar cells and semiconductors.

The probe, launched in July 2025, is expected to conclude by early August. If officials determine that imported polysilicon does not pose a national security risk, the U.S. could expand access to the material, benefiting solar manufacturers such as First Solar.

Analyst Praneeth Satish said the stock could see significant upside if the U.S. eases restrictions on a key raw material used in solar panels.

“We see asymmetric upside in FSLR as the market underappreciates Section 232 polysilicon. A favorable ruling could materially raise US solar pricing and support significant earnings upside,” Satish said.

Bernstein Flags Profitability Challenge

However, not all analysts are optimistic. Last month, Bernstein initiated coverage of First Solar with an ‘Underperform’ rating and a $217 price target, arguing that much of the company’s profitability depends on government tax credits that could change under future policy shifts.

Meanwhile, the U.S. government continues to tighten oversight of the solar supply chain. Last week, a Reuters indicated the Federal Communications Commission is preparing new rules for foreign-made solar inverters as part of broader efforts to strengthen the security of critical energy infrastructure.

Out of 35 analysts covering the stock, 21 have a ‘Buy’ rating, 12 have a ‘Hold’ rating, and two have pegged the stock as a ‘Sell.’ FSLR’s 12-month consensus price target is $247.3, according to Koyfin data.

Retail Sentiment For FLSR Improves

Retail sentiment surrounding FSLR on Stocktwits turned ‘neutral’ from ‘bearish a day earlier, while sentiment for the changed to ‘bearish’ from ‘neutral.’

FSLR shares have declined around 13% so far this year.

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