Susquehanna Financial analyst Biju Perincheril upgraded the stock to positive from neutral and raised his price target to $120 from $89.
"Following management's positive commentaries on module demand and pricing on its 2Q call, we are upgrading FSLR," he wrote in a commentary.
"Our prior neutral rating was premised on margin contraction due to declining module ASPs [average sales prices]. However, ASPs for new bookings appear to be stabilizing," Perincheril said.
First Solar recently traded at $88.453, up 3%. The stock has slumped 10% over the past six months amid valuation concerns.
"Although margins will continue to contract both this year and in 2022 as ASP declines outpace cost improvements, we think margin trajectory will reverse starting in 2023 and continue into 2024," Perincheril said.
Meanwhile, Piper Sandler analyst Kashy Harrison raised his target price to $89 from $80, maintaining his neutral rating. He lifted the target based on the company’s capacity announcements and 2023 pricing remarks, according to The Fly.
Last month, TheStreet's founder Jim Cramer recommended First Solar.
Also in July, Citi analyst J.B. Lowe downgraded First Solar to neutral from buy on valuation.
He upgraded the stock in April, while lifting his price target to $100 from $88. But most of the catalysts behind that move have kicked in, and the stock was approaching his price target.
Lowe said the Tempe, Ariz., company "has flipped" from lagging its peers and the broader solar sector to outperforming.