Sales prospects improved after 2026, Sumitomo is optimistic about First Solar Energy (FSLR.US).

Ruisui has upgraded the rating of First CECEP Solar Energy (FSLR.US) from "Neutral" to "Buy", with a target price raised from $218 to $259. The reason is that the company's sales outlook after 2026 has significantly improved, and it holds a stronger competitive position in the U.S. market. Ruisui analyst Maheep Mandloi highly praises First CECEP Solar Energy's TOPCon technology patents, which give the company a competitive advantage over rivals using older and less efficient PERC cell technology. Due to negative sentiment towards the 45X manufacturing tax credit during the Trump administration, the stock price of First CECEP Solar Energy has underperformed this year. However, even under the assumption that the 45X tax credit expires after 2026, Mandloi believes that tariffs can mitigate any negative impact on the company, thereby improving its negotiating power in 2027. It is understood that the 45X tax credit policy is a key provision of the U.S. Inflation Reduction Act (IRA), aimed at encouraging companies to invest in building Clean Energy Fuels Corp. manufacturing facilities domestically in the U.S. to promote the development of the U.S. clean energy industry. Trump, after being elected president, explicitly opposed the Inflation Reduction Act issued by the Biden administration in 2022. Furthermore, Mandloi stated that while competitors can develop the CECEP Solar Energy supply chain in regions unaffected by tariffs at present, this "takes time, and may be subject to the impact of Trump's tariffs in the future." As of the close of U.S. stock market on Tuesday, First CECEP Solar Energy fell 0.79% to $161.60.