First Solar (NASDAQ:FSLR) Price Target Cut to $236.00 by Analysts at Needham & Company LLC

Key Points

• Needham cut First Solar’s price target from $303 to $236 while maintaining a “buy” rating, implying about 33% upside from the prior close. The analyst consensus remains “Moderate Buy,” with an average target of $262.87.
• First Solar’s latest quarter delivered EPS of $5.30, above the $4.67 consensus, but revenue fell 22.8% year over year to $1.23 billion and missed estimates of $1.29 billion.
• The company retains support from a strong backlog, planned technology and manufacturing expansion, and a $500 million share-repurchase program, though elevated interest rates and weaker revenue guidance pose near-term risks.

First Solar (NASDAQ:FSLR - Get Free Report) had its price objective reduced by investment analysts at Needham & Company LLC from $303.00 to $236.00 in a research report issued to clients and investors on Friday, MarketBeat reports. The brokerage currently has a "buy" rating on the solar cell manufacturer's stock. Needham & Company LLC's price objective points to a potential upside of 33.42% from the company's previous close.

FSLR has been the subject of several other research reports. Mizuho set a $324.00 price objective on shares of First Solar in a research report on Thursday, August 13th. Oppenheimer reiterated a "market perform" rating on shares of First Solar in a research report on Friday, July 31st. Argus reissued a "buy" rating and issued a $275.00 price objective on shares of First Solar in a research note on Wednesday, August 26th. Robert W. Baird lowered their price objective on shares of First Solar from $318.00 to $290.00 and set an "outperform" rating for the company in a research report on Tuesday, September 22nd. Finally, JPMorgan Chase & Co. lowered their price objective on shares of First Solar from $256.00 to $252.00 and set an "overweight" rating for the company in a research report on Monday, October 19th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $262.87.

First Solar Trading Up 0.3%

NASDAQ:FSLR opened at $176.89 on Friday. First Solar has a 1-year low of $165.86 and a 1-year high of $320.95. The stock has a market cap of $19.01 billion, a P/E ratio of 10.91, a PEG ratio of 0.48 and a beta of 1.80. The stock has a 50 day simple moving average of $189.51 and a 200 day simple moving average of $216.51.

First Solar (NASDAQ:FSLR - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The solar cell manufacturer reported $5.30 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.67 by $0.63. The firm had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.29 billion. First Solar had a net margin of 32.47% and a return on equity of 18.02%. The business's revenue for the quarter was down 22.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.24 EPS. As a group, sell-side analysts forecast that First Solar will post 17.63 EPS for the current year.

Insider Transactions at First Solar

In other First Solar news, General Counsel Jason E. Dymbort sold 3,700 shares of the stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $249.38, for a total value of $922,706.00. Following the completion of the transaction, the general counsel directly owned 5,624 shares in the company, valued at approximately $1,402,513.12. This trade represents a 39.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael Koralewski sold 7,000 shares of First Solar stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $221.51, for a total value of $1,550,570.00. Following the sale, the insider directly owned 7,642 shares in the company, valued at $1,692,779.42. The trade was a 47.81% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 16,681 shares of company stock valued at $3,756,286 over the last quarter. 0.39% of the stock is currently owned by insiders.

Hedge Funds Weigh In On First Solar

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Rakuten Investment Management Inc. bought a new stake in shares of First Solar in the 2nd quarter valued at $4,019,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in First Solar by 7.0% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,535,836 shares of the solar cell manufacturer's stock worth $362,396,000 after acquiring an additional 100,694 shares in the last quarter. Jupiter Topco LLC acquired a new stake in First Solar in the second quarter worth $6,121,000. Handelsbanken Fonder AB grew its holdings in First Solar by 15.0% in the second quarter. Handelsbanken Fonder AB now owns 683,112 shares of the solar cell manufacturer's stock worth $161,187,000 after purchasing an additional 89,214 shares during the period. Finally, Korea Investment CORP bought a new stake in First Solar in the second quarter valued at $15,822,000. 92.08% of the stock is currently owned by institutional investors and hedge funds.

Key First Solar News

Here are the key news stories impacting First Solar this week:

• Positive Sentiment: Q3 earnings exceeded expectations: First Solar reported adjusted earnings of $5.30 per share, above the approximately $4.64–$4.67 consensus and up from $4.24 a year earlier. Cost reductions and strong margins helped drive the 14% earnings beat. First Solar Tops Q3 Earnings Estimates
• Positive Sentiment: $500 million share-repurchase program: The buyback could support per-share results and signals management’s confidence in the company’s cash-generation outlook. First Solar Announces Third Quarter Results and Buyback
• Positive Sentiment: Technology and manufacturing expansion: First Solar signed a U.S. patent-licensing agreement with CubicPV covering perovskite technology, while its South Carolina facility began operations. The facility is expected to reach 3.4 gigawatts of annual capacity after its second phase is completed in 2027. These developments reinforce the company’s domestic manufacturing footprint and potential competitive moat. First Solar and CubicPV Patent Agreement
• Neutral Sentiment: Backlog remains a support: Analysts highlighted First Solar’s strong backlog and margins, but noted that elevated interest rates could pressure renewable-energy project financing and valuation multiples. Ariel Global Fund on First Solar
• Negative Sentiment: Revenue missed estimates and declined: Third-quarter revenue fell 22.8% year over year to $1.23 billion, below the $1.29 billion consensus. Full-year revenue guidance of $4.75 billion at the midpoint was also about 5.7% below analyst expectations, overshadowing the EPS beat and clouding the near-term outlook. First Solar Misses Q3 Sales Expectations

About First Solar

First Solar, Inc is a vertically integrated solar technology and manufacturing company that designs, manufactures and sells photovoltaic (PV) solar modules. Its modules use advanced thin-film semiconductor technology based on cadmium telluride (CdTe), rather than the crystalline-silicon technology used by most solar manufacturers. The company serves utility-scale solar developers, commercial and industrial customers, and other large-scale energy users.

Founded in 1999 and headquartered in Tempe, Arizona, First Solar operates research and development, manufacturing and recycling facilities in the United States and internationally.

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