On Tuesday, BMO Capital Markets sustained their positive outlook on shares of First Solar (NASDAQ:FSLR) shares, maintaining an Outperform rating and a $260.00 price target.
The firm's analyst highlighted First Solar as a top pick for 2025, despite acknowledging potential challenges in the market, particularly in relation to the Indian solar equipment sector. The analyst noted that these conditions might affect sales volumes for the company's Series 6 products in Malaysia and Vietnam.
First Solar's revenue forecast for 2025 has been adjusted by BMO Capital from the previous $5.48 billion to $5.1 billion, slightly below the consensus estimate of $5.5 billion. The revision is attributed to the possibility of further project delays and the current market pressures. However, the firm remains confident in First Solar's prospects, suggesting that the stock's current price already factors in a conservative terminal average selling price (ASP) of $0.23 per watt.
The analyst's commentary also pointed out the potential rise in U.S. module prices to the mid-$0.30 per watt range, following recent anti-dumping (AD) determinations. This price adjustment is expected to benefit First Solar in the long term.
BMO Capital's valuation of First Solar shares is based on an 11.2 times multiple of the company's estimated 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding Production Tax Credits (PTCs).
First Solar, recognized for its photovoltaic (PV) solar energy solutions, has been navigating a dynamic global solar market. The company's strategic positioning and response to market conditions will be closely watched by investors as it moves towards its 2025 goals. BMO Capital's reaffirmed price target and rating reflect a vote of confidence in First Solar's ability to overcome short-term market challenges and capitalize on future opportunities in the solar energy sector.
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