Wall Street sets First Solar (FSLR) stock price for the next 12 months

First Solar’s (NASDAQ: FSLR) share price has climbed in recent days, riding on the tailwinds of its decision to construct its fifth U.S. factory amidst a flourishing domestic manufacturing boom triggered by the Inflation Reduction Act (IRA). 

Investor confidence further soared as the solar panel manufacturer delivered better-than-expected Q2 earnings results, igniting optimism in the company’s growth prospects.

The company’s Q2 earnings stood at $1.59 per share on revenue of $811 million, well ahead of Wall Street’s expectations of $1 per share on revenue of $722.2 million. The figures were also significantly higher than First Solar’s report from the same period last year when the manufacturer posted earnings per share of 52 cents on revenue of $621 million. 

View from Wall Street

Over the past three months, 30 analysts offered their ratings for FSLR. As of August 2, the stock has a consensus rating of ‘Buy,” based on 12 ‘Strong Buy,’ 3 ‘Buy,’ and 14 ‘Hold’ recommendations. Meanwhile, only 1 analyst rated the stock as a ‘Strong Sell.”

At the same time, 22 financial experts provided their 1-year price forecasts for FSLR, giving the stock an average price target of $241.59, implying a potential upside of 19.2% from its current price. 

The maximum and minimum price estimates offered by analysts were $332 and $157.56, respectively. 

FSLR price analysis

At the time of publication, shares of First Solar were standing at $202.68, down 2.28% in the past 24 hours.

On a weekly basis, FSLR gained 1.7%, and nearly 9% on a monthly basis. Over those past 30 days, the solar panel maker’s stock oscillated in a significantly volatile trading range, from $182.01 to $217.51. 

Year-to-date, First Solar’s shares rose by more than 34%.

Future outlook

In contrast to its struggling sector rivals, First Solar remains optimistic about future prospects, maintaining its full-year earnings and sales outlook. 

The upbeat guidance, coupled with First Solar’s newly-announced plan to invest $1.1 billion in building a new US factory, led to several price target hikes by prominent Wall Street analysts.

Julien Dumolin-Smith, a strategist at BofA Securities, raised his rating on FSLR from ‘Neutral’ to ‘Buy’ last week and hiked his price objective on the stock from $202 to $283. The move comes amid expectations that FSLR will continue to outperform the broader sector after locking in double-digit yearly earnings growth through the end of the decade. 

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