BMO Downgrades First Solar to Market Perform Amid Competitive Threats
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 17h ago
0mins
Source: seekingalpha
- 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.
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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: 249.410
Low
150.00
Averages
280.35
High
335.00
Current: 249.410
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 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.
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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.
Continue Reading