First Solar: BMO Raises PT to $203 from $194, Maintains Outperform

First Solar: BMO Raises PT to $203 from $194, Maintains Outperform

BMO Capital Markets has increased its price target for First Solar (FSLR) to $203, up from its previous target of $194, while maintaining its Outperform rating on the stock. The move comes after First Solar reported strong second-quarter earnings and raised its full-year sales outlook.

The Tempe, Arizona-based solar panel developer reported earnings per share of $3.18, beating Wall Street's expectations of $2.66. Revenue also exceeded estimates, rising 9% year-over-year to $1.10 billion. First Solar lifted its full-year sales projection to $4.9 billion to $5.7 billion, up from the prior range of $4.5 billion to $5.5 billion.

CEO Mark Widmar stated, "The recent policy and trade developments have, on balance, strengthened First Solar's relative position in the solar manufacturing industry. In addition, we believe that on a fundamental basis, with its cost-competitive energy and faster time to power profile, the case for utility-scale solar generation is compelling regardless of the policy environment, which places First Solar, a utility-scale leader, in a position of strength."

Analysts at BMO Capital believe that First Solar's strong financial performance and strategic corporate actions provide a solid foundation for growth, despite potential risks from policy and tariff uncertainties. The firm's price target reflects this optimism, with the new target representing a 13.33% upside from the stock's current price of $179.13.

First Solar shares have been relatively flat on the year, but the company's strong performance and positive outlook have drawn the attention of analysts. BMO Capital's updated price target and Outperform rating are among several recent upgrades to the stock, reflecting the growing consensus among analysts that First Solar is well-positioned to benefit from the ongoing shift towards renewable energy.

References:
[1] https://www.investopedia.com/first-solar-stock-jumps-as-firm-lifts-full-year-sales-outlook-11783306
[2] https://www.tipranks.com/stocks/fslr/forecast