The likely passage of the new Inflation Reduction Act could mean further upside is in store for shares of First Solar , JPMorgan says. Analyst Mark Strouse upgraded shares of the solar technology stock to overweight from a neutral rating, saying in a note to clients that the bill’s manufacturing credits should benefit First Solar going forward. “FSLR has nearly 3 GW of US-based module capacity, expanding to 5.9 GW by YE24 that will qualify for domestic manufacturing tax credits – $0.04/w cell, $0.07/w module, and likely to include $12/sq. meter for wafers,” he wrote, adding that the value of the credits could add $931 million to the company’s 2024 net income. The upgrade from JPMorgan comes as the Senate on Sunday passed the sweeping healthcare and climate bill, which includes more than $300 billion toward investments in energy projects and combating climate change. The bank expects the bill to likely pass the House of Representatives, albeit with some potential changes. Along with the upgrade, JPMorgan increased its price target on First Solar to $126 from $83 share, which implies a near 24% upside from Friday’s close. Strouse also upgraded shares of TPI Composites in the same note, adding that the fresh estimates for both stocks largely account for the domestic manufacturing tax credits. “Over time, we do expect increased competition to enter the US, eroding a competitive advantage for FSLR, which we believe will likely weigh on the multiple that investors assign to the core operational business,” Strouse said. Guggenheim on Monday also upgraded shares of First Solar to a buy rating, noting that the stock is one of the best-positioned names to benefit from the new act. First Solar shares were up 4.5% in premarket trading. — CNBC’s Michael Bloom contributed reporting