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Investing.com - UBS raised its price target on First Solar (NASDAQ:FSLR) to $275 from $255 while maintaining a Buy rating on the solar manufacturer’s stock. Currently trading at $183.42, First Solar shows strong financial health according to InvestingPro data, with analysts’ targets ranging from $100 to $283.
The price target increase reflects UBS’s application of an unchanged 18.5x multiple to First Solar’s estimated 2027 underlying earnings per share of $10.58, discounted one year at the company’s cost of equity. With a current P/E ratio of 15.7 and projected revenue growth of 25% for FY2025, InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value.
UBS also added the present value of 45X tax credits worth $75 per share, plus $25 per share in expected net cash by the second quarter of 2026, to arrive at the new target.
The firm noted it no longer applies a 25% discount to the present value of First Solar’s 45X tax credits, citing the maintenance of these tax credits for solar components in the OBBB.
UBS mentioned that potential earnings per share uplift from a roughly 3GW per year First Solar U.S. finishing factory is not reflected in its current valuation.
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