First Solar's Growth Potential Amid Target Price Cut
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 09 2026
0mins
Should l Buy FSLR?
Source: Fool
First Solar Inc's stock rose by 3.52% and reached a 20-day high, reflecting positive market interest despite recent challenges.
Analysts have noted that First Solar has achieved an impressive annual revenue growth of 25.4% over the last two years, indicating an expanding market share. However, Jefferies has lowered its target price for First Solar from $205 to $197, reflecting changes in market conditions and expectations for the company's performance. This adjustment comes amid a broader market context where the S&P 500 is down 0.07%, suggesting a potential sector rotation.
The implications of this target price adjustment could lead to increased scrutiny from investors, but the company's strong revenue growth may provide a buffer against negative sentiment.
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Analyst Views on FSLR
Wall Street analysts forecast FSLR stock price to rise
23 Analyst Rating
18 Buy
4 Hold
1 Sell
Moderate Buy
Current: 200.610
Low
150.00
Averages
280.35
High
335.00
Current: 200.610
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.
First Solar Stock Breaks Above 50-Day Moving Average
- Stock Performance: First Solar (FSLR) shares rose approximately 3% on Wednesday, breaking above its 50-day moving average for the first time since February 24, 2026, indicating increased market confidence in its future performance.
- Market Pressure: Jefferies anticipates that rising logistics and inflation costs will exert pressure on FSLR's margins in the near term, potentially impacting the company's profitability and investor sentiment.
- Policy Impact: China's consideration of restricting exports of advanced solar manufacturing equipment to the U.S. could disrupt American solar manufacturing plans; however, First Solar may benefit from its thin-film cadmium telluride technology, which is less reliant on traditional silicon-based supply chains.
- Patent Collaboration: First Solar has secured a patent licensing agreement with Oxford Photovoltaics to develop photovoltaic technology using perovskite semiconductors, aimed at expanding its applications in the U.S. commercial, industrial, and residential markets, thereby enhancing its competitive position.
See More
Significant Premarket Moves in US Stocks
- Bank of America Beats Expectations: Bank of America reported Q1 earnings of $1.11 per share and revenue of $30.43 billion, surpassing analyst expectations of $1.01 and $29.93 billion, driven by strong performance in its equity sales and trading unit, which is likely to bolster investor confidence.
- Broadcom and Meta Partnership: Broadcom announced a collaboration with Meta to deliver 1 gigawatt of custom chips, with plans for multiple gigawatts in the future, leading to a stock increase of over 2.5%, which not only strengthens Broadcom's position in the chip market but also enhances its long-term growth potential.
- Morgan Stanley's Strong Earnings: Morgan Stanley's Q1 earnings reached $3.43 per share with revenue of $20.58 billion, exceeding analyst expectations, resulting in a 2% stock increase, reflecting robust growth in trading revenues and boosting investor confidence in its future performance.
- Snap's Layoff Announcement: Snap announced plans to lay off up to 16% of its workforce, resulting in a stock increase of over 5%, as the company aims to reallocate resources towards improving net income profitability, indicating a strategic shift in response to market challenges.
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- Vistra Stock Undervalued: Cramer highlighted that Vistra is trading at around 19 times earnings, calling it a “steal,” and although the stock is down 25% from its September high, it has gained 6% in just two days, reflecting market recognition of its value.
- Booking Holdings Potential: Cramer believes that many negatives for Booking Holdings are already priced in, with a current P/E ratio of 17, and anticipates a significant price increase once the war ends; the stock has risen 4.4% in two days, presenting a potential return opportunity for investors.
- Southwest Airlines Turnaround Story: Cramer describes Southwest Airlines as a “terrific turnaround story,” noting that while the stock is down 25% from its February high, it has increased by 4.3% in two days and could be a potential takeover target, indicating future growth potential.
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Analysts Weigh in on Solar Energy Stock Investment Timing
- Market Volatility Impact: The ongoing volatility in global oil and gas markets raises questions about the timing for investing in solar stocks, with WideAlpha advising against direct investment in the Invesco Solar ETF (TAN) due to the commoditized nature of PV manufacturers, instead recommending advanced system components like Enphase Energy (ENPH).
- Differentiation Opportunities: Nextpower (NXT) faces commoditization in utility solar trackers but demonstrates competitive advantages through its TrueCapture software that optimizes positioning to increase yield, while also expanding into foundations and automatic monitoring, enhancing its market position.
- Privatization Trend: Companies developing solar and wind projects, such as Innergex and Atlantica Yield, have been taken private, with Boralex (BRLXF) also announcing privatization, indicating strong demand for quality assets, while Brookfield Renewable (BEP) and Northland Power (NPIFF) remain viable pure-play options.
- Renewable Energy Outlook: Despite U.S. natural gas prices not rising alongside global prices, Ragmar Rikberg finds First Solar (FSLR) an attractive investment, with projections indicating renewables will be the only electricity generation segment to grow by 2026, highlighting the sector's long-term potential.
See More
Jefferies Lowers Target Price for First Solar Inc. to $197 from $205 (Correction)
- Price Adjustment: Jeffries has cut the target price for First Solar from $205 to $197.
- Market Impact: This adjustment reflects changes in market conditions and expectations for First Solar's performance.
See More
S&P 500 Stock Analysis and Investment Recommendations
- STERIS Investment Risks: With a market cap of $21.45 billion, STERIS plays a critical role in infection prevention, yet its return on invested capital is only 5%, indicating management struggles to identify attractive investment opportunities; trading at $218.71 per share with a forward P/E of 20.2x suggests limited growth potential.
- Equifax Performance Decline: Equifax, valued at $22 billion, holds detailed financial records on over 800 million consumers, but its adjusted operating margin has decreased by 4.1 percentage points over the past five years, with earnings per share growing only 2.2% annually, and its current share price of $182.39 reflects a forward P/E of 21.1x, indicating competitive weaknesses.
- First Solar Growth Potential: First Solar, with a market cap of $20.96 billion, has achieved an impressive annual revenue growth of 25.4% over the last two years, indicating an expanding market share; its positive free cash flow margin shows the company is at a pivotal point, and its stock price of $195.60 implies a favorable forward P/E of 11.1x, suggesting strong investment value.
- Recommended Market-Leading Stocks: In the current market environment, selecting high-quality stocks is crucial, and StockStory's recommended stocks not only have performed well in the past but also demonstrate ongoing revenue growth and capital return capabilities, making them potential market winners worth investors' attention.
See More
First Solar Stock Breaks Above 50-Day Moving Average
- Stock Performance: First Solar (FSLR) shares rose approximately 3% on Wednesday, breaking above its 50-day moving average for the first time since February 24, 2026, indicating increased market confidence in its future performance.
- Market Pressure: Jefferies anticipates that rising logistics and inflation costs will exert pressure on FSLR's margins in the near term, potentially impacting the company's profitability and investor sentiment.
- Policy Impact: China's consideration of restricting exports of advanced solar manufacturing equipment to the U.S. could disrupt American solar manufacturing plans; however, First Solar may benefit from its thin-film cadmium telluride technology, which is less reliant on traditional silicon-based supply chains.
- Patent Collaboration: First Solar has secured a patent licensing agreement with Oxford Photovoltaics to develop photovoltaic technology using perovskite semiconductors, aimed at expanding its applications in the U.S. commercial, industrial, and residential markets, thereby enhancing its competitive position.
See More
Significant Premarket Moves in US Stocks
- Bank of America Beats Expectations: Bank of America reported Q1 earnings of $1.11 per share and revenue of $30.43 billion, surpassing analyst expectations of $1.01 and $29.93 billion, driven by strong performance in its equity sales and trading unit, which is likely to bolster investor confidence.
- Broadcom and Meta Partnership: Broadcom announced a collaboration with Meta to deliver 1 gigawatt of custom chips, with plans for multiple gigawatts in the future, leading to a stock increase of over 2.5%, which not only strengthens Broadcom's position in the chip market but also enhances its long-term growth potential.
- Morgan Stanley's Strong Earnings: Morgan Stanley's Q1 earnings reached $3.43 per share with revenue of $20.58 billion, exceeding analyst expectations, resulting in a 2% stock increase, reflecting robust growth in trading revenues and boosting investor confidence in its future performance.
- Snap's Layoff Announcement: Snap announced plans to lay off up to 16% of its workforce, resulting in a stock increase of over 5%, as the company aims to reallocate resources towards improving net income profitability, indicating a strategic shift in response to market challenges.
See More
Market Update: Cramer Sees Upside in Uber and Vistra
- Cramer Bullish on Uber: Despite Uber's stock being down 28.5% from its September high, it has risen 3.5% in the last two days, indicating market confidence in its future growth and potentially attracting more investor interest.
- Vistra Stock Undervalued: Cramer highlighted that Vistra is trading at around 19 times earnings, calling it a “steal,” and although the stock is down 25% from its September high, it has gained 6% in just two days, reflecting market recognition of its value.
- Booking Holdings Potential: Cramer believes that many negatives for Booking Holdings are already priced in, with a current P/E ratio of 17, and anticipates a significant price increase once the war ends; the stock has risen 4.4% in two days, presenting a potential return opportunity for investors.
- Southwest Airlines Turnaround Story: Cramer describes Southwest Airlines as a “terrific turnaround story,” noting that while the stock is down 25% from its February high, it has increased by 4.3% in two days and could be a potential takeover target, indicating future growth potential.
See More
Analysts Weigh in on Solar Energy Stock Investment Timing
- Market Volatility Impact: The ongoing volatility in global oil and gas markets raises questions about the timing for investing in solar stocks, with WideAlpha advising against direct investment in the Invesco Solar ETF (TAN) due to the commoditized nature of PV manufacturers, instead recommending advanced system components like Enphase Energy (ENPH).
- Differentiation Opportunities: Nextpower (NXT) faces commoditization in utility solar trackers but demonstrates competitive advantages through its TrueCapture software that optimizes positioning to increase yield, while also expanding into foundations and automatic monitoring, enhancing its market position.
- Privatization Trend: Companies developing solar and wind projects, such as Innergex and Atlantica Yield, have been taken private, with Boralex (BRLXF) also announcing privatization, indicating strong demand for quality assets, while Brookfield Renewable (BEP) and Northland Power (NPIFF) remain viable pure-play options.
- Renewable Energy Outlook: Despite U.S. natural gas prices not rising alongside global prices, Ragmar Rikberg finds First Solar (FSLR) an attractive investment, with projections indicating renewables will be the only electricity generation segment to grow by 2026, highlighting the sector's long-term potential.
See More
Jefferies Lowers Target Price for First Solar Inc. to $197 from $205 (Correction)
- Price Adjustment: Jeffries has cut the target price for First Solar from $205 to $197.
- Market Impact: This adjustment reflects changes in market conditions and expectations for First Solar's performance.
See More
S&P 500 Stock Analysis and Investment Recommendations
- STERIS Investment Risks: With a market cap of $21.45 billion, STERIS plays a critical role in infection prevention, yet its return on invested capital is only 5%, indicating management struggles to identify attractive investment opportunities; trading at $218.71 per share with a forward P/E of 20.2x suggests limited growth potential.
- Equifax Performance Decline: Equifax, valued at $22 billion, holds detailed financial records on over 800 million consumers, but its adjusted operating margin has decreased by 4.1 percentage points over the past five years, with earnings per share growing only 2.2% annually, and its current share price of $182.39 reflects a forward P/E of 21.1x, indicating competitive weaknesses.
- First Solar Growth Potential: First Solar, with a market cap of $20.96 billion, has achieved an impressive annual revenue growth of 25.4% over the last two years, indicating an expanding market share; its positive free cash flow margin shows the company is at a pivotal point, and its stock price of $195.60 implies a favorable forward P/E of 11.1x, suggesting strong investment value.
- Recommended Market-Leading Stocks: In the current market environment, selecting high-quality stocks is crucial, and StockStory's recommended stocks not only have performed well in the past but also demonstrate ongoing revenue growth and capital return capabilities, making them potential market winners worth investors' attention.
See More
