First Solar (FSLR) Stock Forecast & Price Target

First Solar's strong research and development efforts are driving improved module efficiency, increased output, and reduced costs, positioning the company favorably for long-term growth in the solar sector, particularly in light of rising power demand from data centers. The company reported Q4 revenues of $1.5 billion, meeting consensus expectations and reflecting a significant increase in module sales, while maintaining a competitive edge through its unique U.S. manufacturing footprint and capacity expansion plans. Furthermore, First Solar's vertically integrated model and robust backlog of 37.1 GW out of a total of 68.5 GW contribute to strong visibility for future earnings, reinforcing the positive outlook on its operational and financial performance.

First Solar's outlook is hindered by weaker-than-expected profitability and margin guidance for Q4 and 2025, resulting in significant misses in both core EPS estimates and revenue expectations. The company faces multiple downside risks, including heightened competition, ongoing policy and regulatory uncertainty, and potential supply chain disruptions, all contributing to declining margins. Additionally, lower-than-anticipated global demand for solar modules raises concerns about oversupply and decreasing average selling prices, which could adversely affect First Solar's financial performance.