BUZZ-Street view: Analysts see weak margins weighing on First Solar, despite upbeat forecast

Updates

U.S.-based solar panel maker First Solar FSLR.O forecast higher 2025 sales and posted a rise in fourth-quarter profit on Tuesday, helped by strong demand

Company expects 2025 sales between $5.3 billion and $5.8 billion, whit a midpoint about 32% higher than last year

FSLR's shares rise 10.5% to $163

EXPECT NEAR-TERM GROSS MARGIN HEADWINDS

Jefferies ("buy") cuts PT to $201 from $230, says weak margins and uncertainty could pressure stock in the near term

"Beyond 2025, we see some pain points on costs and average selling prices to resolve itself, while some to linger going forward," brokerage

RBC Capital Markets ("outperform") cuts PT to $251 from $280, says Q4 results and 2025 guide disappoints due to a series of headwinds

Brokerage adds: while these could be transitory impacts, timing for a resolution is uncertain due to limited visibility into policy, which is impacting FSLR's ability to efficiently manage its operations

J.P. Morgan ("overweight") cuts PT to $268 from $282, says that despite Q4 results and 2025 outlook being below expectations, it views the near-term gross margin headwinds as mostly temporary