Shares of First Solar, the largest U.S. solar-panel maker, are soaring this week. The stock jumped nearly 32% in the past five trading sessions, hitting levels not seen since September 2011.
What’s behind the move?
The stock posted huge gains on Wednesday after the company increased its earnings guidance and revenue forecast, saying it expected sales of as much as $4 billion this year, up from $3.3 billion in 2013.
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And yesterday, Baird upped its price target on First Solar to $87 a share from $67, saying the company is becoming even more efficient as it reduces costs and pushed new technology into the marketplace.
So will First Solar stay hot?
According to Steven Pytlar of Prime Executions, First Solar could see a 50% move from current prices. “We think that looking at this chart, there really is a potential here for it to move considerably higher…you can get up to about $90 on a technical price target,” Pytlar says.
That’s still significantly lower than all-time highs of $311 per share we saw back in 2008. But some see more gains to come.
“The big news really has to do with their revenue announcement and their expectations of future guidance. That’s what’s driving the market right now,” says Gina Sanchez of Chantico Global. “I see a bright future here.”
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