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Investing.com - JPMorgan has reiterated First Solar (NASDAQ:FSLR) as a "top pick" with a $241 price target for December 2025, representing approximately 19% upside potential from the current price of $202.28. According to InvestingPro data, analysts’ targets range from $100 to $287, with the stock currently trading below its Fair Value, suggesting potential upside opportunity.
The bank recommends buying September call spreads on First Solar to position for upside ahead of the RE+ conference on September 8 and a potential U.S. factory announcement. JPMorgan analysts believe the upcoming conference will serve as a positive catalyst for the solar sector, featuring optimistic commentary from companies regarding fundamentals and order demand. InvestingPro analysis shows First Solar maintains a strong financial position with a current ratio of 1.9 and operates with moderate debt levels, providing flexibility for expansion.
First Solar, which will attend RE+, may announce a capital-light finishing factory in the United States, which would reduce tariff impacts while qualifying for additional credits. This move would help the company address tariffs on product imports from Vietnam and Malaysia.
The investment firm favors First Solar’s risk-reward profile, citing the company’s superior visibility into medium-term growth prospects due to backlogs extending later into this decade. JPMorgan also highlights First Solar’s U.S.-based manufacturing as providing an edge over competitors through more U.S. credits and reduced exposure to tariffs.
Solar stocks have underperformed since the U.S. election due to uncertainty around clean energy credits, but JPMorgan notes that policy certainty has been restored following passage of the OBBB that finalized incentive amounts and the review of safe harbor rules for clean energy credits. Despite recent market volatility, First Solar has demonstrated strong performance with a 37% return over the past six months. For deeper insights into First Solar’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, visit InvestingPro.
In other recent news, First Solar reported impressive financial results for the second quarter of 2025, with earnings per share of $3.18, surpassing the analyst forecast of $2.66. The company also reported revenue of $1.1 billion, exceeding the expected $1.04 billion. UBS has responded to these developments by reaffirming its Buy rating on First Solar’s stock, maintaining a price target of $255. Additionally, UBS raised its price target for the company to $275, citing favorable IRS guidance that broadly maintained tax credit eligibility for the solar industry through 2030. This guidance is seen as a positive move for the sector, clearing uncertainties that have lingered for over a year. UBS continues to view First Solar as a top pick, indicating strong confidence in the company’s future performance. Despite the positive earnings report, First Solar’s stock experienced a slight dip during regular trading hours. However, the overall sentiment from UBS remains optimistic, reflecting confidence in the company’s long-term prospects.
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