Shares of First Solar Inc. slumped 2.4% in premarket trading Monday, to pullback from a 13-year closing high in the previous session, after J.P. Morgan downgraded the solar power systems company on valuation concerns. The stock has skyrocketed 96.7% year to date to close Friday at the highest level since July 2009, boosted by the announcement of the U.S. Inflation Reduction Act, which includes tax breaks for rooftop solar installations. In comparison, the S&P 500 has dropped 15.5% this year. Analyst Mark Strauss cut his rating to neutral, after upgrading it to overweight in August due to the IRA’s passage. He raised his stock price target to $190 from $147, with the new target implying about 11% upside from Friday’s close of $171.43. He expects bookings to remain strong, and current investors should hold on to their positions, but with the stock’s rally since the IRA’s announcement, he believes the “‘easy money’ has now been made.”
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