First Solar Outlook - Navigating Mixed Signals Amid Optimistic Analyst Ratings

Market Snapshot

Takeaway: First Solar (FSLR) is showing a recent price rise of 3.34%, but technical indicators suggest a weak trend with cautious momentum.

News Highlights

Recent news across the semiconductor sector is shaping the broader landscape for First Solar:

• McKinsey analysis on US tariffs: New research highlights potential disruption in semiconductor supply chains, which could indirectly affect First Solar given its role in energy solutions. The sector remains in a regulatory limbo as courts weigh appeals.
• Japan-U.S. cooperation on rare earths and semiconductors: Proposed measures to strengthen supply chains could benefit First Solar by stabilizing raw material access and reducing dependency on China.
• Semiconductor ETF SOXX outflows: A $750M net outflow from the US Semiconductors ETF (SOXX) in May 2025 signals shifting capital priorities. While not directly tied to FSLR, it reflects broader investor caution in the sector.

Analyst Views & Fundamentals

Three major analysts have issued “Strong Buy” ratings for FSLR in the last 20 days, showing high consistency in sentiment. The simple average rating score is 5.00, and the performance-weighted rating score is 4.79, both indicating positive expectations.

This aligns well with the 3.34% price rise in the recent trend, suggesting optimism is translating into action.

Key Fundamental Factors

• Net profit attributable to parent company shareholders / Net profit: 100.0% (score: 1)
• EV/EBIT: 35.77 (score: 3)
• Total profit YoY growth rate: -10.03% (score: 4)
• Net cash flow from operating activities per share YoY growth: -199.31% (score: 3)
• CFOA (Cash flow from operating activities): 1.16% (score: 2)
• Interest coverage ratio (EBIT / Interest expense): -89.59% (score: 3)
• Cost of sales ratio: 56.52% (score: 4)

The fundamental model score is 3.27, indicating mixed signals with some positive cash flow and profitability metrics but also some weak growth indicators.

Money-Flow Trends

Big money is showing interest in First Solar. The fund-flow score is 7.59, a strong signal of positive inflow activity.

• Extra-large investors: Inflow ratio of 53.97%
• Large investors: Inflow ratio of 51.10%
• Medium investors: Inflow ratio of 49.71%
• Small investors: Inflow ratio of 50.07%

This suggests positive flows across all investor sizes, with a 53.00% overall inflow ratio, indicating broad-based buying interest.

Key Technical Signals

Technically, First Solar is in a weak trend with internal diagnostic score of 4.25 (0-10), indicating caution for investors.

Recent Indicator Details

• Bearish Engulfing (09-11): Internal diagnostic score of 8.37, suggesting strong bullish potential.
• WR Overbought (09-04): Internal diagnostic score of 1, biased bearish.
• Long Upper Shadow (09-05): Internal diagnostic score of 1, also biased bearish.

The recent five-day period shows a mixed signal landscape with some strong bullish indicators but also overbought conditions that could trigger short-term corrections.

Key Insights

• Technical indicators are mixed in direction, with some suggesting volatility and no clear trend.
• Market activity is relatively calm in terms of fresh signals, suggesting traders are waiting for clearer direction.

Conclusion

First Solar is showing positive price action with strong institutional inflows and a high consensus of “Strong Buy” ratings. However, the technical landscape is mixed, with some strong bullish signals countered by bearish indicators like WR Overbought and Long Upper Shadow.

Actionable Takeaway: Investors may want to consider waiting for a pull-back or use upcoming earnings to gain clarity on the company's fundamentals before committing to a long-term position.