First Solar Faces Downgrade Amid Competitive Pressures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 13 2024
0mins
Should l Buy FSLR?
Source: SeekingAlpha
First Solar Inc (FSLR) saw its shares rise by 5.17% as it crossed above the 5-day SMA, despite broader market declines with the Nasdaq-100 down 0.91% and the S&P 500 down 0.34%.
The stock's movement comes amid a downgrade from BMO Capital, which lowered First Solar's rating from 'Outperform' to 'Market Perform' and cut its price target from $285 to $263, reflecting concerns over competitive threats from Tesla's solar expansion plans. Analysts believe that while Tesla's plans may create pressure, First Solar's established market position and cost advantages could mitigate the impact.
This situation highlights the ongoing competitive dynamics in the solar industry, where First Solar's technological leadership and proactive investor communication are crucial for maintaining investor confidence, even as market sentiment shifts due to external pressures.
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Analyst Views on FSLR
Wall Street analysts forecast FSLR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FSLR is 280.35 USD with a low forecast of 150.00 USD and a high forecast of 335.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
18 Buy
4 Hold
1 Sell
Moderate Buy
Current: 234.360
Low
150.00
Averages
280.35
High
335.00
Current: 234.360
Low
150.00
Averages
280.35
High
335.00
About FSLR
First Solar, Inc. is a photovoltaic (PV) solar technology and manufacturing company. It is focused on enabling power generation needs with its advanced, thin film PV technology. The Company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. Third-party customers of the segment include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. The Company's products include the Series 7 Module and Series 6 Plus module. Its Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. Its Series 7 module has a larger form factor of approximately 4ft x 7ft in size. The Series 6 Plus and Series 7 modules had an average power output of 459 watts and 531 watts, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pomerantz LLP Investigates First Solar for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether First Solar has engaged in securities fraud or other unlawful business practices, aiming to protect investor rights and potentially initiate a class action lawsuit.
- Rating Downgrade Impact: On January 7, 2026, Jefferies downgraded First Solar from Buy to Hold, citing the company's lowered guidance in 2025, significant de-bookings, and margin compression, predicting more limited deployment opportunities in 2026.
- Stock Price Plunge: Following this news, First Solar's stock price fell by $27.67, or 10.29%, closing at $241.11 per share on January 7, 2026, reflecting market concerns about the company's future prospects.
- Legal Background: Pomerantz LLP is a prominent firm in corporate and securities class litigation, established over 85 years ago, dedicated to fighting for the rights of victims of securities fraud and corporate misconduct, having recovered numerous multimillion-dollar damages for class members.
See More
Limited Impact of Tesla's Solar Plans on First Solar, Analysts Say
- Market Performance Assessment: BMO Capital downgraded First Solar (FSLR) from 'Outperform' to 'Market Perform' with a price target cut from $285 to $263, reflecting concerns over competition from Tesla, although the market reacted mildly with FSLR shares rising 1% on Friday.
- Competition Risk Analysis: Wells Fargo believes that Tesla's solar expansion plans will have limited impact on First Solar due to its cost advantages and pricing power, while other U.S. manufacturers like Canadian Solar (CSIQ) face greater risks, indicating differing market expectations for various companies.
- Industry Feedback and Production Capacity: Mizuho analysts noted that fully U.S.-made solar modules will require significant capital investment, costing more than First Solar's average selling price, and scaling polysilicon and wafer capacity will take three to four years, suggesting that Tesla's plans are unlikely to materialize in the short term.
- Investor Sentiment and Market Reaction: Despite Tesla reiterating its 100 gigawatt solar production target at the World Economic Forum in Davos, FSLR shares fell over 10% on Thursday; however, retail sentiment on Stocktwits remained in the 'bullish' territory, reflecting confidence in the company's long-term prospects.
See More
BMO Downgrades First Solar to Market Perform Amid Competitive Threats
- Rating Downgrade: BMO has downgraded First Solar's rating from Outperform to Market Perform, reducing the price target from $285 to $263, reflecting concerns over future competitive pressures on the company.
- Competitive Threat: Analyst Ameet Thakkar noted that remarks by Tesla CEO Elon Musk in Davos suggest that Tesla may establish a vertically integrated solar PV module manufacturing base in the coming quarters, posing a potential threat to First Solar.
- Market Uncertainty: While it remains uncertain how much of Tesla's planned 100 GW manufacturing capacity will impact external markets, the company's proven ability to rapidly scale clean energy manufacturing in the U.S. increases competitive risks for First Solar.
- Long-term Pricing Pressure: Even if a portion of Tesla's manufacturing capacity is available to third parties, analysts believe this could negatively affect long-term module pricing, thereby exerting pressure on First Solar's stock price.
See More
Wall Street Volatility Returns as Microsoft Shares Plunge
- Microsoft Stock Plunge: Microsoft shares fell 12%, marking the largest single-day drop since March 2020, as investors expressed concerns over slowing Azure cloud growth and cautious guidance, resulting in a market cap loss of approximately $400 billion.
- Tech Sector Decline: The Nasdaq 100 dropped 1.6% and the S&P 500 fell 1%, reflecting weakened market confidence in tech stocks, particularly amid questions regarding the pace of AI monetization following Microsoft's results.
- IBM's Strong Performance: International Business Machines Corp. saw a 6% increase in stock price after reporting better-than-expected quarterly results and guidance, standing out as one of the few bright spots in a weak session for large-cap tech stocks.
- Commodity Market Fluctuations: Gold prices tumbled 3% to $5,250 and silver slid 4% to $112, while copper rose 2.5% to a record $6.20 per pound and WTI crude climbed 3.5% to $65 per barrel, indicating a divergence in commodity market trends.
See More
BMO Downgrades First Solar to Market Perform Amid Tesla's Solar Expansion
- Rating Downgrade: BMO Capital downgraded First Solar from 'Outperform' to 'Market Perform' and cut its price target from $285 to $263, indicating a cautious outlook on the company's future performance.
- Market Pressure: BMO believes Tesla's potential expansion into solar module manufacturing in the coming quarters could create a lasting overhang on First Solar's shares, negatively impacting investor sentiment.
- Stock Volatility: Following BMO's downgrade, First Solar's shares plummeted over 12%, reaching their lowest level in more than three months, reflecting market concerns about the company's future prospects.
- Retail Sentiment Shift: Despite the stock's decline, retail investor sentiment on Stocktwits flipped from 'neutral' to 'bullish', with some users viewing the dip as a buying opportunity, indicating ongoing optimism about First Solar's long-term potential.
See More
First Solar to Report Q4 2025 Results and 2026 Outlook
- Earnings Release Schedule: First Solar will report its Q4 and full-year 2025 financial results on February 24, 2026, after market close, and discuss its 2026 financial guidance, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Details: The call is scheduled for 4:30 PM ET, with a live webcast available on the company's investor relations website, indicating the company's proactive approach to information disclosure aimed at boosting investor confidence.
- Technological Leadership: As America's leading photovoltaic solar technology and manufacturing company, First Solar focuses on its unique thin-film PV technology, representing the next generation of solar power solutions and enhancing its competitiveness in the global market.
- R&D Strength: The technology developed at its R&D labs in California and Ohio provides a high-performance and responsibly produced alternative to conventional crystalline silicon PV modules, further solidifying its leadership position in the renewable energy sector.
See More
Pomerantz LLP Investigates First Solar for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether First Solar has engaged in securities fraud or other unlawful business practices, aiming to protect investor rights and potentially initiate a class action lawsuit.
- Rating Downgrade Impact: On January 7, 2026, Jefferies downgraded First Solar from Buy to Hold, citing the company's lowered guidance in 2025, significant de-bookings, and margin compression, predicting more limited deployment opportunities in 2026.
- Stock Price Plunge: Following this news, First Solar's stock price fell by $27.67, or 10.29%, closing at $241.11 per share on January 7, 2026, reflecting market concerns about the company's future prospects.
- Legal Background: Pomerantz LLP is a prominent firm in corporate and securities class litigation, established over 85 years ago, dedicated to fighting for the rights of victims of securities fraud and corporate misconduct, having recovered numerous multimillion-dollar damages for class members.
See More
Limited Impact of Tesla's Solar Plans on First Solar, Analysts Say
- Market Performance Assessment: BMO Capital downgraded First Solar (FSLR) from 'Outperform' to 'Market Perform' with a price target cut from $285 to $263, reflecting concerns over competition from Tesla, although the market reacted mildly with FSLR shares rising 1% on Friday.
- Competition Risk Analysis: Wells Fargo believes that Tesla's solar expansion plans will have limited impact on First Solar due to its cost advantages and pricing power, while other U.S. manufacturers like Canadian Solar (CSIQ) face greater risks, indicating differing market expectations for various companies.
- Industry Feedback and Production Capacity: Mizuho analysts noted that fully U.S.-made solar modules will require significant capital investment, costing more than First Solar's average selling price, and scaling polysilicon and wafer capacity will take three to four years, suggesting that Tesla's plans are unlikely to materialize in the short term.
- Investor Sentiment and Market Reaction: Despite Tesla reiterating its 100 gigawatt solar production target at the World Economic Forum in Davos, FSLR shares fell over 10% on Thursday; however, retail sentiment on Stocktwits remained in the 'bullish' territory, reflecting confidence in the company's long-term prospects.
See More
BMO Downgrades First Solar to Market Perform Amid Competitive Threats
- Rating Downgrade: BMO has downgraded First Solar's rating from Outperform to Market Perform, reducing the price target from $285 to $263, reflecting concerns over future competitive pressures on the company.
- Competitive Threat: Analyst Ameet Thakkar noted that remarks by Tesla CEO Elon Musk in Davos suggest that Tesla may establish a vertically integrated solar PV module manufacturing base in the coming quarters, posing a potential threat to First Solar.
- Market Uncertainty: While it remains uncertain how much of Tesla's planned 100 GW manufacturing capacity will impact external markets, the company's proven ability to rapidly scale clean energy manufacturing in the U.S. increases competitive risks for First Solar.
- Long-term Pricing Pressure: Even if a portion of Tesla's manufacturing capacity is available to third parties, analysts believe this could negatively affect long-term module pricing, thereby exerting pressure on First Solar's stock price.
See More
Wall Street Volatility Returns as Microsoft Shares Plunge
- Microsoft Stock Plunge: Microsoft shares fell 12%, marking the largest single-day drop since March 2020, as investors expressed concerns over slowing Azure cloud growth and cautious guidance, resulting in a market cap loss of approximately $400 billion.
- Tech Sector Decline: The Nasdaq 100 dropped 1.6% and the S&P 500 fell 1%, reflecting weakened market confidence in tech stocks, particularly amid questions regarding the pace of AI monetization following Microsoft's results.
- IBM's Strong Performance: International Business Machines Corp. saw a 6% increase in stock price after reporting better-than-expected quarterly results and guidance, standing out as one of the few bright spots in a weak session for large-cap tech stocks.
- Commodity Market Fluctuations: Gold prices tumbled 3% to $5,250 and silver slid 4% to $112, while copper rose 2.5% to a record $6.20 per pound and WTI crude climbed 3.5% to $65 per barrel, indicating a divergence in commodity market trends.
See More
BMO Downgrades First Solar to Market Perform Amid Tesla's Solar Expansion
- Rating Downgrade: BMO Capital downgraded First Solar from 'Outperform' to 'Market Perform' and cut its price target from $285 to $263, indicating a cautious outlook on the company's future performance.
- Market Pressure: BMO believes Tesla's potential expansion into solar module manufacturing in the coming quarters could create a lasting overhang on First Solar's shares, negatively impacting investor sentiment.
- Stock Volatility: Following BMO's downgrade, First Solar's shares plummeted over 12%, reaching their lowest level in more than three months, reflecting market concerns about the company's future prospects.
- Retail Sentiment Shift: Despite the stock's decline, retail investor sentiment on Stocktwits flipped from 'neutral' to 'bullish', with some users viewing the dip as a buying opportunity, indicating ongoing optimism about First Solar's long-term potential.
See More
First Solar to Report Q4 2025 Results and 2026 Outlook
- Earnings Release Schedule: First Solar will report its Q4 and full-year 2025 financial results on February 24, 2026, after market close, and discuss its 2026 financial guidance, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Details: The call is scheduled for 4:30 PM ET, with a live webcast available on the company's investor relations website, indicating the company's proactive approach to information disclosure aimed at boosting investor confidence.
- Technological Leadership: As America's leading photovoltaic solar technology and manufacturing company, First Solar focuses on its unique thin-film PV technology, representing the next generation of solar power solutions and enhancing its competitiveness in the global market.
- R&D Strength: The technology developed at its R&D labs in California and Ohio provides a high-performance and responsibly produced alternative to conventional crystalline silicon PV modules, further solidifying its leadership position in the renewable energy sector.
See More
