Soleno Therapeutics tumbles despite Q3 earnings, revenue beat
Investing.com - Jefferies raised its price target on First Solar (NASDAQ:FSLR) to $269.00 from $260.00 on Friday, while maintaining a Buy rating on the solar manufacturer’s stock. The new target represents potential upside from First Solar’s current price of $233.58, with shares trading near their 52-week high of $249.56 after gaining an impressive 85.65% over the past six months.
The price target increase comes despite near-term uncertainty stemming from BP’s termination of contracts for 6.6 gigawatts of solar panels. First Solar management is actively pursuing new contracts at higher average selling prices of approximately $0.36 per watt.
Jefferies noted that First Solar’s re-contracting efforts are supported by favorable Section 232 tariffs and Foreign Entity of Concern (FEOC) tailwinds in the U.S. solar market. The firm expressed a constructive view on near-term average selling prices for solar panels. According to InvestingPro data, First Solar maintains a GREAT financial health rating with a solid balance sheet, operating with a moderate level of debt and liquid assets that exceed short-term obligations.
The research firm characterized BP’s contract terminations as potentially a "blessing in disguise" if First Solar successfully secures new contracts at higher prices. However, Jefferies acknowledged that booking levels will depend on developers’ needs to secure hardware for 2030 projects. The broader analyst community shares Jefferies’ optimistic outlook, with a consensus recommendation of Buy and a high price target of $300.
Due to near-term risks, Jefferies lowered its volume projections for First Solar in 2026 and 2027, but offset this reduction by forecasting higher average selling prices from 2028 through 2030. With a current P/E ratio of 20.34, First Solar is trading at a premium relative to its near-term earnings growth. InvestingPro offers 10 additional investment tips for First Solar and comprehensive analysis through its Pro Research Report, providing deeper insights into the company’s valuation and growth prospects.
In other recent news, First Solar has reported its third-quarter 2025 financial results, showing mixed outcomes. The company achieved revenue of $1.59 billion, slightly surpassing consensus estimates of $1.58 billion, driven by a record volume of 5.3 gigawatts sold. However, adjusted earnings per share came in at $4.24, just below the expected $4.27, due to one-time underutilization charges. Despite these mixed results, Goldman Sachs has maintained its Buy rating for First Solar, with a price target of $316. Mizuho, on the other hand, has adjusted its price target to $278 from $335, citing resolved supply chain challenges at the Alabama facility as a reason for the company’s reduced guidance. RBC Capital has also reiterated an Outperform rating, with a price target of $244, acknowledging challenges such as contract terminations and supply chain issues impacting the 2025 outlook. These developments indicate that while First Solar is facing some operational challenges, analysts remain optimistic about its performance.
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