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On Wednesday, TD Cowen maintained a positive outlook on First Solar (NASDAQ:FSLR) shares, despite lowering the price target to $200 from the previous $275, while keeping a Buy rating. The adjustment comes amid a mix of stable and challenging factors influencing the company’s performance and outlook. According to InvestingPro data, the stock has experienced a significant 29% decline over the past six months, though analysis suggests it’s currently trading below its Fair Value.
Analysts at TD Cowen highlighted several positive aspects for First Solar, noting that the average selling price in the company’s backlog remained stable and that previously concerning warranty issues now appear to be under control. The company’s strong financial health is evident in its impressive 43.6% gross margin and healthy current ratio of 1.93. Additionally, the political and trade environment was cited as a long-term benefit for First Solar, as the firm is on course to expand its vertically integrated domestic operating capacity to 14GW by 2026. This growth trajectory, supported by robust revenue growth of 19.4% over the last twelve months, solidifies First Solar’s position as the only U.S.-headquartered PV manufacturer with significant scale and the sole vertically integrated solar company operating in three states.
However, the analysts also pointed out several negative factors that have led to the adjustment of the price target. First Solar’s guidance for 2025 has been lowered due to risks associated with tariffs. Furthermore, policy uncertainties related to the Inflation Reduction Act (IRA) are affecting management’s ability to make near-term adjustments. Production in Malaysia and Vietnam faces the risk of being idled, and there is ongoing uncertainty regarding negotiations with customers about the absorption of tariffs.
The mixed outlook reflects the complexities of the solar industry, where policy, trade, and manufacturing factors can significantly impact company operations and financial forecasts. First Solar’s ability to navigate these challenges while continuing to scale its operations domestically will be closely watched by investors and industry analysts alike.
In other recent news, First Solar has been at the center of several analyst reports following its revised 2025 guidance and first-quarter performance. Mizuho (NYSE:MFG) Securities adjusted its price target for First Solar from $252 to $251 while maintaining an Outperform rating, citing higher underutilization costs at the company’s Southeast Asia facilities. Oppenheimer downgraded First Solar from Outperform to Perform due to uncertainties surrounding tariff and tax policies, which could impact the company’s financial guidance. BofA Securities also lowered its price target from $215 to $185, maintaining a Buy rating, and noted First Solar’s strategic decision to reduce production in Malaysia and Vietnam as a risk mitigation measure.
Goldman Sachs reduced its price target for First Solar to $204 from $235, maintaining a Buy rating, as the company revised its guidance to account for various tariff scenarios. The analysts at Goldman Sachs suggested that positive developments in trade negotiations could serve as catalysts for the stock. KeyBanc Capital Markets took a more cautious approach, downgrading First Solar to Underweight and setting a new price target of $100, after the company’s first-quarter results fell short of expectations. The firm highlighted the impact of global tariffs and uncertainties surrounding the Investment Tax Credit under the Inflation Reduction Act as key concerns.
These developments underscore the challenges First Solar faces amid ongoing trade policy discussions and tariff impacts. Investors are closely monitoring the situation, especially regarding how future policy resolutions might influence First Solar’s operations and financial performance.
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