First Solar stock rose Monday after shares of the major solar panel manufacturer were upgraded to Buy even as the stock price has retreated sharply in recent months.

Shares of First Solar advanced 2.4% to $182.10 in premarket trading on Monday after ending Friday down 0.6% at $177.82. The stock has fallen 32% this year and has declined 44% since June 3, when it closed at $318.25.

That sharp stock price decline was one of the reasons that Truist Securities analyst Christopher Souther upgraded First Solar to Buy from Hold and raised his price target to $270 from $229. That price target represented 51% upside from the closing price on Friday.

Souther said in a research note that the recent "valuation reset" along with signs that solar demand will pick up in the coming years were major reasons for his bullish view on the stock.

The analyst noted that recent regulatory decisions should support pricing upside for First Solar bookings. Souther added that solar panel demand is expected to rise through the end of the decade and into the 2030s.

While First Solar stock was rising Monday, the Invesco Solar ETF fell 0.7%. Among other solar stocks, Enphase Energy was a fraction lower, Sunrun declined 0.3%, and Nextpower was down 0.4%.