First Solar (FSLR) Stock Forecast & Price Target

First Solar's focus on research and development is expected to enhance module efficiency and reduce costs, positioning the company for significant growth potential in the solar sector, particularly in 2025 and beyond. The company's Q4 revenues reached $1.5 billion, driven by increased module sales, and it has a solid backlog of 37.1GW out of a total 68.5GW, which supports future revenue expectations. Furthermore, First Solar's vertically integrated model and robust manufacturing capabilities provide a competitive advantage, allowing it to capitalize on favorable regulatory trends and increased power demand from data centers.

First Solar's recent financial performance indicates a negative outlook, with weaker-than-expected Q4 margins and profitability, along with a disappointing 2025 guidance that fell short of consensus estimates by approximately 10-16%. Key concerns include elevated competition, regulatory uncertainties, and supply chain disruptions which could further pressure margins, while a potential oversupply in the global solar market threatens to diminish demand and average selling prices. Additionally, sluggish capacity ramp-up and the risk of tariffs highlight the challenges facing the company in maintaining its position as a leading solar module manufacturer.