RBC Capital Markets sees Vietnam trade deal removing uncertainty for First Solar

RBC Capital Markets says the U.S. trade deal with Vietnam for a 20% tariff rate could have positive implications for solar company First Solar FSLR.O

FSLR shares up 6.7% at $173.96 in afternoon trade

Adds that the trade deal removes downside risk that Vietnam tariffs would go back to 46% following the July 9 roll off of the pause on "reciprocal" tariffs

FSLR was idling 1 gigawatt (GW) of production in Vietnam and Malaysia this year as a result of tariff uncertainty

"We believe the outcome of the trade deal coupled with the possibility of accelerated order activity likely biases estimates higher," - RBC

33 of 39 brokerages rate the stock "buy" or higher, 5 "hold" and 1 "sell"; median PT is $199.50 - data compiled by LSEG

Including sessions moves, stock down 1.4% YTD