Solar technology company First Solar has seen its shares skyrocket in the new year — and some think this is only the beginning. The stock on Tuesday hit its highest level since September 2008. Year to date, it’s up more than 41% after surging 72% in 2022. This year’s rally comes as CEO Mark Widmar lays out ambitious growth projections for 2023, which include tripling the company’s net sales from the prior year to a range between $3.4 billion to $3.6 billion. On top of that, First Solar is seen as a key beneficiary of the Inflation Reduction Act, which was passed last year by U.S. lawmakers and includes billions of dollars in clean energy subsidies. FSLR YTD mountain FSLR soaring in 2023 This momentum is expected by some of those covering the stock to continue. UBS analyst Jon Windham, who rates the stock as a buy, has a near-Street-high price target of $250 per share. That implies upside of 17.8% from Monday’s closing level. The analyst said last week that First Solar is “well-positioned for years of outsized earnings” as developers attempt to reach the IRA’s domestic content requirements, after which they are eligible to receive up to 10% in investment and production tax credits. These requirements include using steel or iron produced in the U.S. Windham added that the company is looking to gain $1.7 billion annually from U.S. domestic manufacturing tax credits once it completes its U.S. production expansion. Windham isn’t the only one bullish on First Solar. “I think [the stock] is fine even at these price levels. It’s been in a pretty good range. The technicals look good, but more to it than just that — the fundamentals are looking better,” Jim Worden, chief investment officer of Wealth Consulting. The risks To be sure, there are some potential risks facing the company. CFRA analyst Keven Young thinks that, while First Solar will benefit from an “explosion” of solar demand in the U.S., he also says that “rapid expansion of production capacity carries risk.” He added that “the Street might have reached a top to 2024 estimates.” Young has a buy rating on the stock and a price target of $210 per share. Meanwhile, Wealth Consulting’s Worden noted that First Solar shares are already trading at a high valuation. First Solar trades at a forward price-to-earnings multiple of around 33, well above the S & P 500’s 18 times forward earnings. Refinitiv data also shows that the average analyst price target on the stock is $187.99, which implies downside of about 12%. “I would say that just [from] a valuation standpoint, it doesn’t look super attractive. But when you account for earnings next year, we’re going to be through the roof,” Worden noted. “I would probably not be piling into it right now if you don’t already own it. But if you’re a long-term investor, this is where you can start adding.” — CNBC’s Michael Bloom contributed reporting.