First Solar stock price target lowered to $216 by Barclays

Published 15/07/2025, 13:22
First Solar stock price target lowered to $216 by Barclays

Investing.com - Barclays (LON:BARC) lowered its price target on First Solar (NASDAQ:FSLR) to $216.00 from $222.00 on Tuesday, while maintaining an Overweight rating on the solar manufacturer’s shares. Currently trading at $160.84, the company maintains strong financial health with a P/E ratio of 13.65 and impressive revenue growth of 19.42% over the last twelve months.

The firm expects a relatively uneventful second-quarter earnings call for First Solar, noting that bookings will likely be light and that full-year guidance will probably not be revised higher. According to InvestingPro, the company’s earnings report is scheduled for July 24, with analysts maintaining positive forecasts for the year ahead. InvestingPro subscribers have access to 10 additional key insights about First Solar’s performance.

Barclays indicated that First Solar’s management may be restrained in discussing the implications of the Outbound Business Beneficial Bilateral Benefit (OBBB) program due to a pending Executive Order that could alter its impact.

The firm also highlighted that customer bookings activity was likely limited during the quarter due to uncertainty surrounding the budget reconciliation bill, which Barclays believes "paralyzed activity" in the market.

Regarding First Solar’s guidance, Barclays noted that while the Vietnam trade deal likely eliminates the low end of the company’s forecast range, potential project delays could offset this positive development.

In other recent news, First Solar has seen notable developments that could impact its future performance. Jefferies has raised its price target for First Solar to $194, maintaining a Buy rating, citing the company’s entanglement with macroeconomic factors and the potential impact of tariff decisions on its Southeast Asian facilities. The firm anticipates that clarity on the Inflation Reduction Act will boost volumes in 2026. RBC Capital has also increased its price target for First Solar to $200, with an Outperform rating, highlighting the positive implications of the One Big Beautiful Bill for demand. RBC Capital believes First Solar’s U.S. supply chain offers a competitive advantage under new legislative restrictions.

For the upcoming second quarter, Jefferies estimates First Solar’s revenue at $988 million, slightly below consensus, with gross margins expected at 41%. The firm has adjusted its 2025 revenue and EBITDA estimates to $5.2 billion and $2.3 billion, respectively, both above consensus. Recent tariff decisions have imposed duties on Malaysia and Vietnam, though First Solar’s Southeast Asian operations are expected to remain viable. Additionally, the U.S. Senate’s advancement of a tax bill preserving solar tax credits has provided a boost to renewable energy stocks, including First Solar. GLJ Research noted that unchanged 45x credits for solar production are an incremental positive for First Solar.

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