Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Wednesday, Truist Securities adjusted its outlook on First Solar stock (NASDAQ:FSLR), reducing the price target to $200 from the previous $245, while still recommending a Buy rating for the company. The revision reflects a conservative stance taken by analysts in light of the current challenges faced by the utility-scale solar industry. The stock, currently trading at $122.72, has experienced a significant 29% decline over the past six months, despite maintaining strong fundamentals with a P/E ratio of 10.25.According to InvestingPro analysis, First Solar appears undervalued at current levels, with multiple ProTips suggesting strong financial positioning. Discover more insights and detailed valuation metrics with an InvestingPro subscription.
Jordan Levy, an analyst at Truist Securities, expressed that First Solar and its peers are navigating a complex environment, marked by significant uncertainties related to tariffs and the implications of the Inflation Reduction Act (IRA). Despite these issues, Levy noted that First Solar is in a unique position due to its predominantly U.S.-based supply chain, which offers a considerable advantage. The company’s strong market position is reflected in its impressive 19.4% revenue growth and robust financial health metrics.
Nevertheless, the company is required to maintain a delicate balance in its pricing, contracts, and customer relations to avoid exacerbating financial pressures. In response to these industry headwinds, Truist Securities has adopted a more cautious perspective for the fiscal year 2025, aligning its estimates with the lower end of the company’s revised guidance range.
While acknowledging the near-term challenges that may cause some instability, Levy remains optimistic about First Solar’s long-term prospects. The new price target of $200, down from $245, takes into account the current difficulties but reaffirms the Buy rating, suggesting confidence in the company’s enduring strategic position.
In other recent news, First Solar has experienced a series of adjustments in its financial outlook and analyst ratings. BofA Securities lowered its price target for First Solar to $185 from $215, maintaining a Buy rating despite the company’s weaker-than-expected first-quarter performance and reduced 2025 guidance due to tariff uncertainties in Southeast Asia. Similarly, Goldman Sachs reduced its price target to $204 from $235, citing potential tariff impacts but maintaining a Buy rating. TD Cowen also adjusted its price target to $200 from $275, while keeping a Buy rating, noting stable selling prices and controlled warranty issues but highlighting concerns over tariffs and policy uncertainties. Mizuho (NYSE:MFG) Securities made a slight reduction in its price target to $251 from $252, while retaining an Outperform rating, as it acknowledged higher underutilization costs in Southeast Asia and the impact of a 10% import tariff. Oppenheimer downgraded First Solar from Outperform to Perform, pointing to uncertainties in tariff and tax policies, which could lead to idled production capacity if unresolved. These developments reflect the complex landscape First Solar is navigating, with analysts weighing the company’s strategic strengths against ongoing policy and trade challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.