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Tempe, Arizona-based First Solar, Inc. (FSLR) is a solar technology company. It manufactures PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. With a market cap of $24.4 billion, First Solar's operations span the Americas, Europe, and Asia-Pacific.
Shares of the solar panel manufacturer have underperformed the broader market over the past year. Although FSLR stock rallied 21.1% over the past 52 weeks, it lagged behind the S&P 500 Index's ($SPX) 28.1% returns during the same time frame. However, in 2024, FSLR is up 27.8%, outperforming SPX’s 17.3% gains on a YTD basis.
Narrowing the focus, FSLR outperformed the Solar Invesco ETF’s (TAN) 28.5% decline over the past 52 weeks and a 23.6% dip on a YTD basis.
FSLR’s standout performance this year has been fueled by solid financial results and strategic regulatory moves. The Inflation Reduction Act's tax credits for U.S.-made solar panels and tariffs on low-cost Chinese imports have given First Solar a powerful boost, positioning it as a key player in the solar industry’s evolving landscape.
FSLR stock surged by 18.7% on May 22 after UBS (UBS) analysts Jon Windham raised the target price to $270 on May 21, forecasting FSLR’s EPS to grow from $7.74 last year to $36.74 by 2027. Windham cited increased electricity demand from AI data centers and favorable protectionist policies as key drivers of growth.
More recently, FSLR stock jumped 2.4% following the release of its Q2 earnings on July 30. The company’s EPS rose 47.7% annually, surpassing the estimates by an impressive 21.7%. This demonstrated the company’s strong performance, making investors optimistic.
For the current fiscal year, ending in December, analysts expect First Solar to report an EPS growth of 75.3% year over year to $13.57. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 31 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 23 “Strong Buy” ratings, one “Moderate Buy,” and seven “Holds.”
This configuration is slightly less bullish than three months ago, with 24 analysts recommending a “Strong Buy.”
On Aug. 2, Barclays (BCS) analyst Christine Cho maintained an “Overweight” rating with a price target of $290.
FSLR’s mean price target of $290.36 represents a premium of 31.9% from current price levels. The Street-high target of $368 indicates a potential upside of 67.1%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
