For much of the past month, solar stocks have struggled under the weight of political uncertainty, trade investigations, and shifting expectations for clean-energy policy. But one of Wall Street’s largest banks believes investors may now have an opportunity instead of a warning sign.
Deutsche Bank has upgraded First Solar (NASDAQ: FSLR) to Buy, arguing that the recent selloff has created an attractive entry point before several potential catalysts unfold during the second half of the year.
The firm believes the stock could climb roughly 17% from recent levels, driven by improving earnings, policy clarity, and a normalization of business conditions heading into 2027.
For investors looking for opportunities in beaten-down sectors, First Solar has suddenly moved back onto Wall Street’s radar.
Why Deutsche Bank Changed Its Mind
Deutsche Bank upgraded First Solar from Hold to Buy while raising its price target from $245 to $272 per share.
According to analyst Corinne Blanchard, investors have become overly focused on near-term uncertainty while overlooking several positive developments that could emerge over the coming months.
Among the biggest reasons behind the upgrade:
- Stronger expected performance during the second half of 2026
- Improving visibility into the company’s 2027 earnings outlook
- Expected clarification of U.S. trade policy regarding imported polysilicon
Blanchard believes the combination of these factors could significantly improve investor sentiment toward the stock.
The 24% Selloff That Created the Opportunity
Since early June, shares of First Solar have fallen approximately 24%.
The decline wasn’t primarily driven by deteriorating company fundamentals.
Instead, investors have been waiting for the outcome of an ongoing U.S. investigation into imported polysilicon, one of the key materials used throughout the solar supply chain.
That uncertainty has weighed heavily across much of the renewable energy sector.
Deutsche Bank argues the market may now be pricing in a more negative outcome than is ultimately likely.
Why One Government Decision Matters So Much
The biggest catalyst investors are watching is the U.S. government’s Section 232 investigation involving polysilicon imports.
The investigation is expected to conclude in August.
Rather than sharply restricting imports through quotas, many analysts now expect policymakers to implement a fixed tariff structure.
If that happens, First Solar could benefit from greater supply-chain flexibility while maintaining protections against unfair foreign competition.
According to Deutsche Bank, greater clarity surrounding the investigation could remove one of the largest overhangs facing the stock.
Why First Solar Could Benefit More Than Competitors
Unlike many solar manufacturers, First Solar produces thin-film solar modules rather than relying on traditional crystalline silicon technology.
That manufacturing approach gives the company a different cost structure and a stronger domestic production footprint.
The company has also invested heavily in expanding U.S. manufacturing capacity as federal incentives continue encouraging domestic clean-energy production.
Should trade policy ultimately support American manufacturers while allowing sufficient access to critical materials, First Solar could find itself in a particularly favorable competitive position.
Wall Street Already Likes the Stock
Deutsche Bank isn’t alone in its optimism.
According to LSEG data, 25 of the 42 analysts covering First Solar currently rate the shares either Buy or Strong Buy.
While price targets vary, many analysts continue to view the recent weakness as temporary rather than structural.
That broad institutional support suggests many on Wall Street believe the company’s long-term outlook remains intact despite recent volatility.
What Investors Should Watch Next
Several developments could determine whether Deutsche Bank’s bullish call plays out.
Key events include:
- The expected August decision on the Section 232 investigation
- Updates on U.S. tariff policy affecting solar manufacturing
- Second-half earnings performance
- Management’s outlook for 2027 production and profitability
Any combination of improving policy clarity and stronger financial results could help restore investor confidence after the stock’s recent decline.
The Bottom Line
First Solar has become one of the more closely watched names in the renewable energy sector after its sharp summer pullback.
Deutsche Bank believes that decline has created an opportunity rather than a warning signal, citing improving earnings visibility, favorable trade-policy expectations, and a potential rebound during the second half of the year.
While government policy remains the largest near-term variable, investors willing to tolerate that uncertainty may soon find out whether this recent selloff marked a temporary setback—or an attractive buying opportunity.
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