First Solar continued a month-long skid on Tuesday, even as Deutsche Bank upgraded shares of the solar manufacturer, insisting its core growth story remains intact.

Analyst Corinne Blanchard named First Solar a "fundamentally strong" choice for investors seeking a U.S.-based solar panel manufacturer with a robust balance sheet, pointing to its $2.1 billion in net cash as of the second quarter.

Shares have pulled back after riding a clean-tech rally in May. However, although the enthusiasm has faded, Blanchard maintains the company's "fundamental story" remains intact.

Her endorsement came as Blanchard lifted her rating on the shares from Hold to Buy while boosting her price target to $272 from $245. With the stock trading at a "significant discount" to the rest of Deutsche's coverage, Blanchard sees it as a buying opportunity for medium- to long-term investors ahead of a stronger second half of the year.

Shares fell another 1.6% to $229.28 on Tuesday, continuing a slide that began in earnest last month. Counting those losses, the stock has fallen more than 12% in 2026, lagging behind a 9.4% gain for the benchmark S&P 500.

Blanchard expects shares to get a lift in the coming weeks once the federal government provides clarification on its Section 232 investigation into foreign polysilicon imports. That clarification will allow management to make decisions regarding onshoring and offshoring, "which currently have been paused," the analyst added.

The company is moving equipment into the U.S. after deciding to onshore its finishing line last year. Blanchard expects "an acceleration of the financial performance into the coming months," adding that 2027 will be a "more normalized business year."

The analyst noted that First Solar is the only U.S.-based thin-film panel manufacturer, giving it a distinct market advantage. This edge is magnified by Section 45X of the Internal Revenue Code, which grants the company stacked manufacturing tax credits for domestic solar production.

But shares still have to win over Wall Street. Despite analyst endorsements, First Solar has fallen by double digits since the start of June.

Of 37 firms tracked by FactSet, 23 rate First Solar at Buy or Overweight, 11 at Hold, and two at Underweight. Just one, KeyBanc Capital Markets, rates the stock at Sell.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

July 07, 2026 12:36 ET (16:36 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.