First Solar stock price target raised to $201 from $185 at BofA Securities

Published 22/07/2025, 11:30
First Solar stock price target raised to $201 from $185 at BofA Securities

Investing.com - BofA Securities raised its price target on First Solar (NASDAQ:FSLR), a $19.1 billion solar manufacturer trading at a P/E of 15.1x, to $201.00 from $185.00 on Tuesday, while maintaining a Buy rating on the stock. According to InvestingPro analysis, the company appears slightly undervalued at its current price of $178.33.

The price target increase reflects BofA’s view that recent Outlay-Based Build Back Better (OBBB) revisions support U.S. volume growth for the company, strengthening its market position.

BofA also highlighted that a new anti-dumping/countervailing duty (AD/CVD) petition targeting India, Indonesia, and Laos, along with the Section 232 investigation into imported polysilicon, could limit non-compliant imports and reinforce First Solar’s regulatory advantages.

The investment bank believes First Solar is well-positioned in what it describes as a "structurally tighter U.S. market" where the company maintains significant pricing power over competitors.

BofA noted that potential risks remain, including the Treasury Department’s interpretation of a recent Executive Order and possible changes to the "beginning of construction" rule, which could impact industry supply and demand dynamics if the 12-month safe harboring window is reduced.

In other recent news, First Solar has been the subject of several analyst updates. RBC Capital raised its price target for First Solar to $200 from $188, maintaining an Outperform rating. This adjustment reflects positive implications from the One Big Beautiful Bill, which may increase demand due to its 100% U.S. supply chain advantage. Meanwhile, Jefferies also increased its price target from $192 to $194, citing the company’s entanglement with macroeconomic factors and potential volume growth driven by the Inflation Reduction Act. Jefferies expects First Solar’s revenue for the second quarter to be $988 million, slightly below consensus, with gross margins at 41%. They also raised 2025 revenue and EBITDA estimates to $5.2 billion and $2.3 billion, respectively. Barclays (LON:BARC), however, lowered its price target to $216 from $222, while maintaining an Overweight rating, noting potential project delays and limited customer bookings. Additionally, the U.S. Senate’s advancement of a tax-and-spending bill has mixed implications for renewable energy stocks, including First Solar, as the bill preserves tax credits for solar leasing arrangements.

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