Why First Solar Stock Rocketed More Than 28% in August

Shares of First Solar (NASDAQ: FSLR) jumped 28.6% in August, according to data from S&P Global Market Intelligence. Powering the solar panel maker's surge was the passive of the Inflation Reduction Act (IRA), which will benefit the company's operations.

President Biden signed the IRA into law last month. It includes a $369 million investment in climate and energy policy. Key features include the extension of the investment tax credit and domestic manufacturing tax credits.

Analysts view First Solar as a major beneficiary of this new legislation. Several upgraded the stock last month. For example, Guggenheim analyst Joseph Osha raised the firm's rating from neutral to buy while giving shares a $135 price target. Osha noted that "investors have not fully digested how transformational the IRA could be for First Solar's business."

Source Fool.com