First Solar could notch strong gains if the U.S. widens access to a critical material used in solar panels after wrapping up its investigation into the, according to Wells Fargo. The bank has an overweight rating on the solar energy name. It also hiked its price target to $320 from $255, suggesting 42% upside from Thursday’s close. “We see asymmetric upside in FSLR as the market underappreciates Section 232 polysilicon,” analyst Praneeth Satish said Monday in a note to clients. “A favorable ruling could materially raise US solar pricing and support significant earnings upside.” In July 2025, the U.S. Department of Commerce launched a Section 232 investigation into imported polysilicon, a material that is widely produced in China. Polysilicon serves as the foundation for solar cells, semiconductors and other technologies. The investigation has not yet closed. However, its outcome will inform the U.S.’ trade policy toward imports of polysilicon, which are currently subject to heavy tariffs. If federal officials conclude that polysilicon imports do not pose a national security threat, the U.S. could widen access to the material. That would create a major tailwind for solar panel manufacturer First Solar, likely boosting the company’s shares, according to Wells Fargo. “In our upside scenario, we assume a successful Section 232 polysilicon ruling, which leads to +$0.09/w [average selling price] upside on 2028+ bookings,” Satish wrote. The bank’s call falls in line with consensus on Wall Street. Of the 42 analysts covering First Solar, 25 have a buy or strong buy rating on the stock, LSEG data shows. Shares of First Solar have fallen 14% in the year to date.
Wells Fargo says this struggling solar stock to benefit from potential trade policy shift
