First Solar (FSLR) Stock Forecast & Price Target

First Solar's robust research and development initiatives are expected to enhance module efficiency and reduce costs, positioning the company for long-term growth in the solar sector. The company reported fourth-quarter revenues of $1.5 billion, aligning with consensus estimates, driven by increased module sales, and it anticipates a $0.7 billion benefit from its current backlog. With a competitive manufacturing footprint and positive industry tailwinds, First Solar's vertically integrated model provides significant visibility into future earnings and a resilient business strategy, supporting a favorable long-term outlook.

First Solar has reported weaker-than-expected margins and profitability for Q4, leading to substantial reductions in EPS guidance for both Q1 and 2025, which fell approximately 40% and 10% below prior consensus, respectively. The company also anticipates several downside risks, including heightened competition, regulatory uncertainty, and supply chain disruptions, which could further exacerbate declining margins and slower capacity ramp-up. Additionally, concerns about lower-than-expected global demand for solar modules and potential tariff risks contribute to a challenging outlook for First Solar's financial performance.