First Solar, Maxeon upgraded to Buy from Sell at Goldman Sachs
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First Solar (NASDAQ:FSLR) and Maxeon Solar Technologies (MAXN) on Wednesday were upgraded to Buy from a Sell rating at Goldman Sachs. The investment bank pointed to the tax-and-climate bill signed last month by President Biden as a key driver for the U.S. solar industry.
Conversely, Goldman Sachs downgraded Shoals Technologies Group (SHLS) to Sell from Buy and Canadian Solar (CSIQ) to Sell from Neutral because theyâre less likely to benefit from the Inflation Reduction Act of 2022 (IRA).
The law has incentives for the biggest investment in energy-efficient products in U.S. history. It sets aside $21 billion for rebates and federal tax deductions for energy-saving improvements to peopleâs homes in the next 10 years.
âSimply put, we see stocks with U.S. leverage and/or U.S.-based manufacturing as fundamentally best positioned, and we take a deeper dive look at where valuation would suggest further upside exists,â Brian Lee, analyst at Goldman Sachs, said in the Sept. 7 note.
The bank also updated earnings estimates and price targets for the solar companies in its coverage.







Goldman Sachs - Rating Changes for Solar Industry (Sept. 7)




New Rating
Old Rating


Canadian Solar (CSIQ)
Sell
Neutral


First Solar (FSLR)
Buy
Sell


Maxeon Solar Technologies (MAXN)
Buy
Sell


Shoals Technology Group (SHLS)
Sell
Buy










Goldman Sachs - Price Target Changes for Solar Industry (Sept. 7)




New
Old
Sept. 7 Close


Array Technologies (ARRY)
$32
$25
$22.03


Canadian Solar (CSIQ)
$38
$43
$47.01


Enphase Energy (ENPH)
$328
$290
$316.31


First Solar (FSLR)
$172
$60
$134.80


Fluence Energy (FLNC)
$19
$15
$19.40


Maxeon Solar Technologies (MAXN)
$27
$9
$21.22


Shoals Technology Group (SHLS)
$21
$23
$27.76


Sunnova Energy Int'l (NOVA)
$26
$25
$27.64


SunPower (SPWR)
$18
$14
$27.37


Sunrun (RUN)
$42
$40
$36.58


Seeking Alpha contributor EnerTuition has a Buy rating on First Solar (FSLR) because of the U.S. tax-and-climate law. Contributor A. Vandendael rates Maxeon (MAXN) as a Buy because of the law's incentives for solar energy.