First Solar rated underperform at Bernstein, citing risky tax credit reliance

Bernstein initiated coverage of First Solar (FSLR) on June 16, 2026.

The firm issued an Underperform rating for the stock. Bernstein set a $217 price target. This valuation sits significantly below the current trading price of over $260.

Bernstein attributes the negative outlook to the company's heavy dependence on government policy. Tax credits account for approximately 75% of First Solar's gross margin.

Analysts warn that the market incorrectly prices these credits as permanent. Future policy changes pose a significant risk to the stock's valuation.