First Solar will likely be a main beneficiary of the Inflation Reduction Act's manufacturing tax credits , according to UBS. That could mean good news for the stock. Analyst Jon Windham upgraded the solar stock to buy from neutral and raised his price target by $110 to $250. His new price target implies the stock could jump 26.1% from where it closed Thursday. "We upgrade shares of FSLR from Neutral to Buy and within our coverage see FSLR as the most significant beneficiary of the Inflation Reduction Act," he said in a note to clients Friday. Firs Solar should see years of outsized earnings as demand for its U.S. offerings rise with developers attempting to hit the 10% domestic content threshold within the IRA , according to Windham. The manufacturing credits should also add $1.7 billion to annual revenue following the company's expansion of its U.S. production operations. He said the tax credits would also mitigate prior concerns related to start-up and ramp-up costs diluting margins in 2023 and 2024 as the company increases its U.S. manufacturing presence. First Solar's U.S. production volume should more than double between 2023 and 2027, Windham said. Given the potential windfall from the IRA, Windham increased adjusted earnings per share estimates to $7.54 from $5.33 in 2023 and $25.93 from $21.90 in 2025. He did trim his 2024 adjusted earnings per share forecast to to $11.78 from $12.15. To be sure, he said the stock could face challenges on this path depending on pricing trends, which can be impacted by how much competitors ramp up capacity. The company also still has to handle ramp-up costs and execution challenges as it aims to more than double its manufacturing footprint by the end of 2025. The stock gained 1.5% in premarket trading. It's up 32.3% so far this year, continuing to rally after surging 71.9% in 2022. FSLR 1Y mountain First Solar — CNBC's Michael Bloom contributed to this report.