Rise in First Solar stocks after climate bill approval

This past weekend, the U.S. Senate approved the $430 billion Inflation Reduction Act, which contains funds to combat climate change. As the bill moves into the House, shares of renewable energy companies are rising. First Solar, Inc. (NASDAQ:FSLR) was last noted up 10.4% to trade at $112.48. Guggenheim and J.P. Morgan Securities upgraded the stock in response to the news, raising its price objective for FSLR from $83 to $126 while adding that the stock may rise 20%.

The impact of the bill on stocks includes:

  • Extending the investment tax credit till 2024 at a 30% rate
  • Domestic content adder could receive 40% of the credit
  • Tax credits for domestic manufacturing

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