First Solar stock gets UBS Buy rating reaffirmation on policy outlook

Published 04/08/2025, 15:34
First Solar stock gets UBS Buy rating reaffirmation on policy outlook

Investing.com - UBS has reiterated its Buy rating and $255.00 price target on First Solar (NASDAQ:FSLR) following the company’s second-quarter earnings report. Currently trading at $182.79, InvestingPro analysis suggests the stock is undervalued, with analyst targets ranging from $100 to $283.

First Solar reported second-quarter 2025 adjusted earnings per share that exceeded analyst expectations and narrowed its 2025 guidance ranges while maintaining the midpoints of those projections. The company maintains strong financials with a 42.76% gross margin and healthy revenue growth of 15.39% over the last twelve months. InvestingPro data reveals 10+ additional key insights about First Solar’s financial health and growth prospects.

UBS views the results positively, suggesting that the second quarter likely represented the bottom of policy uncertainty for the solar manufacturer, with potential earnings upside starting in the second half of 2026 driven by additional U.S. production capacity.

The investment firm believes the market is underestimating First Solar’s advantaged position in the U.S. solar market, which is supported by 45X domestic manufacturing tax credits maintained in the One Big Beautiful Bill Act and strict enforcement of Foreign Entity of Concern provisions following President Trump’s July 7, 2025 executive order.

UBS also cited existing U.S. solar import tariffs and the ongoing Department of Commerce Section 232 investigation into polysilicon and derivative product imports as additional factors strengthening First Solar’s market position.

In other recent news, First Solar Inc . reported earnings for the second quarter of 2025 that surpassed expectations, with earnings per share reaching $3.18 compared to the projected $2.66. The company’s revenue also exceeded forecasts, coming in at $1.1 billion against an anticipated $1.04 billion. These financial results highlight stronger-than-expected performance for the quarter. Despite the positive earnings and revenue figures, the stock experienced a decline during regular trading hours. However, it showed a slight increase in aftermarket trading. There were no significant mergers or acquisitions reported for First Solar during this period. Analyst reactions to the earnings report have not been specified, and no upgrades or downgrades were mentioned. These developments provide a snapshot of First Solar’s recent financial performance and market activities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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