JPMorgan Asserts First Solar Inc. (FSLR) as Top Pick on Improving Fundamentals

First Solar Inc. (NASDAQ:FSLR) is one of the best wind power and solar stocks to buy according to analysts. Over the past three months, 17 Wall Street analysts have rated First Solar (FSLR) stock, with 15 issuing a Buy, 1 a Hold, and 1 a Sell, resulting in a consensus rating of “Strong Buy.” Their 12-month price forecasts range from $177.00 to $287.00, with an average target of $222.31, suggesting a potential upside of 9.40% from the current price of $203.21.

Reinforcing this bullish sentiment, JPMorgan reaffirmed First Solar as its top pick on August 25, projecting the stock could climb to $241 by December.

According to the investment bank, the stock is well positioned to edge higher ahead of the RE+ conference and the potential impact of a new US factory. JPMorgan expects the conference to be a positive catalyst for the embattled solar sector, given the optimistic commentary expected regarding the sector’s fundamentals.

Amid regulatory concerns and inventory oversupply, First Solar has held steady, as evidenced by the stock rallying by more than 8% year to date. The rally has followed impressive second-quarter results, in which earnings totaled $3.18 per share, beating estimates of $2.66 per share.

Likewise, JPMorgan remains confident about the company’s prospects, especially with the unveiling of a capital-light finishing factory that will shield it from the impact of tariffs on products from Vietnam and Malaysia. It also favors First Solar’s risk-reward profile, citing its superior visibility into medium-term growth prospects.

First Solar Inc. (NASDAQ:FSLR) manufactures advanced, responsibly produced thin-film solar technology and modules for utility-scale applications, providing a competitive, high-performance alternative to traditional crystalline silicon panels. It also offers engineering, procurement, and construction (EPC) services for solar power plants.

While we acknowledge the potential of FSLR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Robinhood Penny Stocks to Invest In and 12 Best Cybersecurity Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.