Baird downgrades First Solar stock rating on outlook uncertainty
#First Solar #Baird downgrade #FSLR stock #Solar energy #Regulatory uncertainty #Price target #Q4 earnings #Investment outlook
📌 Key Takeaways
- Baird downgraded First Solar to Neutral from Outperform and lowered price target to $205 from $264
- First Solar exceeded Q4 revenue expectations but missed on adjusted earnings per share
- Company faces regulatory uncertainties with Section 232, FEOC, and global tariffs
- Despite downgrade, stock remains undervalued according to InvestingPro analysis
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Baird downgraded First Solar's stock rating to Neutral from Outperform on Wednesday, February 25, 2026, and lowered its price target to $205 from $264, citing mixed fourth-quarter results and uncertainty in the company's forward outlook as the reasons for the adjustment. The financial adjustment follows First Solar's recent performance where the company exceeded revenue expectations with $1.68 billion in the fourth quarter, surpassing analyst consensus of $1.57 billion. However, adjusted earnings per share fell short at $4.84 compared to the analyst estimate of $5.15. For the full year 2025, First Solar's revenue reached $5.2 billion, up from $4.2 billion in 2024, largely due to a 24% increase in third-party module volume. Despite the downgrade, Baird acknowledged that First Solar maintains a strong backlog position and trades at a P/E ratio of 19. The $26.1 billion company has delivered a 65% return over the past year despite a 6.9% decline year-to-date. The company remains hesitant with booking new business due to outstanding variables with Section 232, clarity on FEOC, and global tariffs, which create several regulatory and trade policy uncertainties affecting business decisions.
🏷️ Themes
Stock Market, Solar Energy, Financial Analysis
📚 Related People & Topics
First Solar
American solar power company
First Solar, Inc. is a publicly traded American manufacturer of solar panels. First Solar uses rigid thin-film modules for its solar panels, and produces CdTe panels using cadmium telluride (CdTe) as a semiconductor.
Solar energy
Radiant light and heat from the Sun, harnessed with technology
Solar energy is the radiant energy from the Sun's light and heat, which can be harnessed using a range of technologies such as solar electricity, solar thermal energy (including solar water heating) and solar architecture. It is an essential source of renewable energy, and its technologies are broad...
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Gold prices rebound on tariff jitters; silver, platinum and copper rally Nvidia, Salesforce earnings loom large - what’s moving markets AMD stock surges 14% on Meta AI partnership deal Bitcoin slips, wipes out 50% from October record high at session low (South Africa Philippines Nigeria) Baird downgrades First Solar stock rating on outlook uncertainty By Investing.com Analyst Ratings Published 02/25/2026, 03:47 AM Baird downgrades First Solar stock rating on outlook uncertainty 0 FSLR 0.44% Investing.com - Baird downgraded First Solar (NASDAQ:FSLR) to Neutral from Outperform on Wednesday and lowered its price target to $205 from $264. The downgrade follows mixed fourth-quarter results and uncertainty in the company’s forward outlook. The firm’s 2026 guidance was largely consistent with Baird’s preview, but commentary on the earnings call left the firm incrementally negative. The $26.1 billion company trades at a P/E ratio of 19, though shares have delivered a 65% return over the past year despite a 6.9% decline year-to-date. First Solar maintains a strong backlog position but remains hesitant with booking new business given outstanding variables with Section 232, clarity on FEOC, and global tariffs. The company faces several regulatory and trade policy uncertainties affecting its business decisions. Baird expects shares to trade lower in the near term given the lower than consensus guidance and several unknowns. The firm cited multiple question marks in the company’s forward outlook as a key factor in the rating change. Despite the near-term concerns, InvestingPro analysis suggests the stock remains undervalued relative to its Fair Value, placing it among opportunities on the platform’s most undervalued stocks list. The solar panel manufacturer continues to navigate a complex regulatory environment while managing its existing order book and evaluating new business opportunities. In other recent news, First So...
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