First Solar (FSLR) Stock Forecast & Price Target

First Solar has demonstrated improved liquidity, with cash and marketable securities increasing to approximately $1.2 billion, bolstered by tax-credit monetization and plans to sell additional credits, enhancing its financial stability. Additionally, there is a positive outlook on CdTe spot pricing, which has risen and is anticipated to continue increasing, potentially impacting revenue positively. The company also expects to surpass previous revenue estimates for 2026 and 2027, projecting approximately $6.3 billion and $7.2 billion, respectively, while gross margins are slightly up, reflecting the potential for continued profitability and growth.

First Solar is facing significant challenges that contribute to a negative outlook, as indicated by ~35% of investors anticipating a reduction in the company's 2025 guidance due to ongoing quality issues and underperformance of modules. The decline in c-Si prices and oversupply is adversely affecting average selling prices (ASPs), which are projected to fall below $0.28/W, putting pressure on the company's ability to maintain profitability. Furthermore, the company’s overall backlog is decreasing, and uncertainties surrounding ongoing trade policies may hinder its operational efficiency, leading to potential underperformance in earnings as cost reduction efforts may not sufficiently offset these adverse market conditions.