Shares of First Solar, a company listed on NASDAQ as FSLR, have increased by 15%. The massive stock surge comes when demand for renewable energy is increasing amid the sharp fuel prices.

First Solar Stocks have Soared as Seen on the S&P Global Market Intelligence

The S&P Global Market Intelligence data was used to show that the stocks of First Solar have soared. This was after several analysts started to boost their price targets for the stock of the renewable energy producer.

According to the story on NASDAQ, analyst Julien Dumoulin-Smith from Bank of America increased his share-price forecast for First Solar. His share-price forecast was increased from a mere $138 to a higher $165.

First Solar is Expected to Experience Massive Earnings Growth in the Coming Years

Dumoulin-Smith reportedly expects there to be a stronger demand for renewable energy. Should this be true, this would allow the solar panel manufacturer to charge what was described as "favorable prices for its products."

The analyst also notes that he sees First Solar experiencing massive strong earnings growth in the years to come. During the same period, Joseph Osha from the Guggenheim Partners gave an even more positive forecast.

Highest Forecast is that the Stock Could Reach a Whopping $233 at a 50% Increase

Osha says the stock could launch even higher to $233 and increase by a whopping 50%. He noted that the company could "lock in attractive prices" for its numerous projects. This would help them give their investors better visibility regarding the company's long-term revenue streams.

Kashy Harrison, an analyst of Piper Sandler, announced a $200 price target for shares of First Solar. This was an increase from previous targets of just $170.

The Analysts Believe that First Solar's Wins Shows that They have Increased Pricing Power and Potential for Higher Profits

Just like Osha and Dumoulin-Smith, Harrison also believes that the wins of First Solar give evidence of increasing pricing power and the potential for higher profits to be generated in the coming years.

The article, contributed by The Motley Fool, noted that the Inflation Reduction Act of 2022 is becoming a huge factor that has positively affected the solar industry. The bill reportedly includes a massive $369 billion in climate change and energy security investments.

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The Budget of $369 Billion is Intended to Help the US Dramatically Reduce Carbon Emissions

The staggering $369 billion is designed to help the US dramatically reduce carbon emissions. First Solar was described in the article as a leading American provider of renewable energy power and that the company is likely to benefit from the incentives given by the government.

The incentives were reportedly designed to help increase the domestic production of high-performance photovoltaic semiconductors. The financial incentives, plus the increase in demand for clean energy, will help improve the growth of First Solar in the next decade.

As of press time, FSLR is now $153.62 from its year-to-date price of $87.28. The company has a market cap of $16 billion and a day range of $149.11 to $161.64.

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Written by Urian B.