First Solar missed expectations on profit and offered investors weak guidance on Tuesday, but most analysts nonetheless remain bullish on the solar panel manufacturer. Shares of First Solar plummeted 13% in Wednesday’s premarket trading hours after the company reported first-quarter earnings of $1.95, missing the $2.49 analysts polled by FactSet had forecast. While the company’s first-quarter revenue beat expectations, First Solar’s second-quarter earnings guidance also missed the mark. First Solar sees its earnings for the current quarter coming in between $2 to $3 per share, lower than FactSet’s estimate of $3.99. As an additional blow, the company lowered its full-year earnings guidance to a range from $12.50 to $17.50, again below FactSet’s $17.77 estimate. The company’s prior guidance had called for earnings to range between $17 to $20 per share. Despite this earnings disappointment, most analysts maintained their bullish stance on First Solar, although they unanimously lowered their price targets. Here’s what analysts at some of Wall Street’s biggest shops had to say on the report. KeyBanc downgrades shares to underweight from sector weight, adopts price target of $100 Analyst Sophie Karp’s target implies about 27% downside from Tuesday’s close. “While FSLR has sizable domestic manufacturing capacity that is used to serve the U.S. market, the impact of volumes imported from its facilities in Vietnam, Malaysia, and India appears to be greater than we thought, and not likely to be mitigated in the NT under the 10% global tariff regime or higher ‘reciprocal’ tariffs. This uncertainty is pancaked on top of broader anxiety over the fate of various IRA provisions, and we believe will put pressure on valuation in the NT.” Oppenheimer downgrades First Solar to perform from outperform, removes prior price target of $304 “Uncertainty on timing of policy resolution (FSLR’s indicated federal budget negotiations could extend into 2026) suggest the low-end of guidance in 2025 is a realistic scenario. We downgrade to hold pending further policy clarity.” Bank of America reiterates buy rating but lowers price objective to $185 from $215 Bank of America’s forecast corresponds to upside of around 35%. “We reiterate our Buy rating on First Solar despite a weaker-than-expected Q1 and a meaningful cut to ’25 guidance due to tariff-driven uncertainty impacting SEA production. The decision to remove up to 2.5 GW of potentially uneconomic volume from guidance and idle Malaysian/Vietnamese production in 2H25 reflects disciplined execution and risk mitigation.” Morgan Stanley keeps overweight rating, decreases price target to $194 from $223 Morgan Stanley’s target calls for 41% upside going forward. “Another turbulent quarter for FSLR, with tariff headwinds driving a ~20% cut to the midpoint of the guidance. We still see the top-end of the guide as achievable but recognize there are lingering risks around its international manufacturing footprint.” Citi maintains buy rating, reduces price target to $198 from $236 Analyst Vikram Bagri’s forecast is 44% above First Solar’s Tuesday closing price. “FSLR revised FY25 guidance with tariff book-ends. Low end reflects tariffs reverting to country specific levels resulting in plant closures. The high end, which is more likely, assumes tariffs stay at 10% and FSLR absorbs the exposure. Notably, high end is within the previous guidance range.” JPMorgan keeps overweight rating, cuts price target to $200 from $268 Analyst Mark Strouse’s price target was approximately 46% higher than First Solar’s closing price on Wednesday. “We are updating our model, baking in the more conservative view that tariffs will increase to Reciprocal levels in July, while also continuing to assume that 45x IRA tax credits will remain in place. Our YE25 price target goes to $200, from $268, including ~$87 in value from 45x, though we believe there is material upside in the event that tariffs are lower than previously announced Reciprocal levels. We maintain our Overweight rating and highlight FSLR as a top pick.” Goldman Sachs maintains buy rating, lowers price target to $204 from $236 Goldman Sachs’ target equates to 49% upside. “We expect the stock could be under pressure near-term and range bound until further clarity around tariffs, though we do note that incremental tariff developments and headlines around de-escalation and/or trade deals with FSLR’s impacted countries of exposure would likely serve as catalysts for the stock and signal a potential revision higher in guidance on the next earnings call, all else being equal.” UBS stands by buy rating, decreases price target to $235 from $240 Analyst Jon Windham’s price target implies upside of 71%. “FSLR cut FY2025 shipment, revenue and gross profit guidance due to potential tariff impacts. Broadly, the high-end of the guide contemplates current tariffs and the low-end contemplates the ‘reciprocal’ tariffs (currently paused for 90 days) taking effect on 09-Jul-2025 … Our base case had already assumed the 10% global tariff remains in place, but not the “reciprocal”, currently paused, tariffs.” — CNBC’s Michael Bloom contributed to this report.
First Solar delivered a first-quarter earnings miss. Here’s how analysts reacted
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