Tempe, Arizona-based First Solar, Inc. (FSLR) is a solar technology company that provides photovoltaic (PV) solar energy solutions. Valued at a market cap of $15.1 billion, the company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. 

This solar technology company has considerably lagged behind the broader market over the past 52 weeks. Shares of FSLR have declined 27.3% over this time frame, while the broader S&P 500 Index ($SPX) has soared 8.6%. Moreover, on a YTD basis, the stock is down 20.2%, compared to SPX’s 3.8% loss. 

Narrowing the focus, FSLR has also underperformed the Invesco Solar ETF’s (TAN) 26.6% drop over the past 52 weeks and 4.3% downtick on a YTD basis. 

On Apr. 29, First Solar delivered weaker-than-expected Q1 results, prompting its share price to decline 8.3% in the following trading session. The company posted a revenue of $844.6 million, up 6.4% from the year-ago quarter, but slightly below analyst estimates. Moreover, its net income declined 11.4% year-over-year to $1.95 per share and fell short of the forecasted figure by a notable margin of 22%. A rise in the cost of sales and operating expenses, along with operational challenges tied to shifting geographic sales mix and ongoing industry policy changes, affected its profitability. 

Additionally, due to uncertainty around evolving U.S. tariffs and their impact on customer demand and production allocations, the company sharply lowered its fiscal 2025 sales and profit expectations. It now expects net sales to be between $4.5 billion and $5.5 billion, and anticipates EPS in the range of $12.50 to $17.50. 

Despite these near-term headwinds presented by the new tariff regime, the company remains confident in the long-term outlook for solar energy, especially in the core U.S. market, and believes that First Solar is well-positioned to meet future demand.

For the current fiscal year, ending in December, analysts expect FSLR’s EPS to grow 21.7% year over year to $14.63. The company’s earnings surprise history is disappointing. It fell short of the consensus estimates in three of the last four quarters, while exceeding on another occasion. 

Among the 34 analysts covering the stock, the consensus rating is a “Strong Buy” which is based on 25 “Strong Buy,” two “Moderate Buy,” six “Hold,” and one “Strong Sell” rating. 

This configuration is less bullish than a month ago, with 27 analysts suggesting a “Strong Buy” rating.

On May 1, Truist Financial Corporation (TFC) maintained a “Buy” rating on FSLR but lowered its price target to $200, which indicates a 42.2% potential upside from the current levels. 

The mean price target of $206.20 represents a 46.6% potential upside from First Solar’s current price levels, while the Street-high price target of $340 suggests an ambitious upside potential of 141.7%.