First Brands Group debt targeted by Apollo Global Management - report
On Friday, Jefferies analyst Julian Dumoulin-Smith updated the firm’s outlook on First Solar (NASDAQ:FSLR) shares, increasing the price target slightly to $202 from $201, while reiterating a Buy rating on the stock. The adjustment reflects expectations of margin pressures in the first quarter, which may result in earnings per share at the lower end of the company’s guidance range of $2.20 to $2.70. According to InvestingPro data, the stock currently trades at a P/E ratio of 10.5, near its 52-week low of $124.32, having declined over 50% in the past six months.
Dumoulin-Smith noted that short-term uncertainties, particularly those related to the Inflation Reduction Act (IRA) and tariffs, might impact First Solar’s stock in the near term. The analyst posed the question of whether clarity on these issues, regardless of whether the outcome is positive or negative, would be sufficient to drive a recovery in the stock’s value. InvestingPro analysis suggests the stock is currently undervalued, with 12 additional ProTips available to subscribers providing deeper insights into the company’s financial health and market position.
Despite these concerns, Dumoulin-Smith expressed a positive long-term outlook for First Solar, citing the company’s strong position in domestic content and the potential for increased demand from data centers beginning in 2027 and beyond. This anticipated demand is seen as a significant factor that could support the company’s performance in the future. The company’s solid financial position is evidenced by its strong balance sheet with more cash than debt, a healthy current ratio of 2.45, and projected revenue growth of 32% for FY2025.
First Solar specializes in manufacturing solar panels and providing photovoltaic solutions. The company’s focus on domestic production may give it an advantage in the U.S. market, especially in light of the current emphasis on domestic sourcing and production in renewable energy policies.
Investors in First Solar will be watching closely for further developments regarding the IRA and tariff policies, which could have significant implications for the renewable energy sector and for First Solar’s positioning within it.
In other recent news, First Solar has partnered with Everstream Analytics to enhance its supply chain resilience, employing risk insight and mitigation strategies to address potential disruptions. Barclays (LON:BARC) analyst Christine Cho revised First Solar’s stock price target to $236 while maintaining an Overweight rating, citing production dynamics and strategic adjustments across its global facilities. Mizuho (NYSE:MFG) Securities also adjusted its price target to $252, keeping an Outperform rating, following First Solar’s fourth-quarter results and fiscal year 2025 revenue guidance, which met expectations. UBS lowered its price target to $285, maintaining a Buy rating, and noted First Solar’s U.S. production ramp-up is progressing well, despite some international demand concerns.
RBC Capital Markets cut its price target to $251, maintaining an Outperform rating, due to challenges impacting First Solar’s fourth-quarter results and future guidance. The company faced several transitory charges, including a $36 million logistics charge related to shipment delays and a $39 million impact from a tax credit sale. Despite these challenges, RBC Capital’s analysis suggested that First Solar’s gross profit and EBIT exceeded both RBC and consensus estimates. The company reported gross bookings of approximately 5.1 gigawatts to U.S. utility-scale customers in 2024, with a backlog of 68.5 gigawatts at the end of the fourth quarter. These developments highlight First Solar’s ongoing efforts to navigate a complex global environment while maintaining its competitive edge in the U.S. market.
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