RBC Capital reiterates First Solar stock rating at Outperform

Investing.com - RBC Capital reiterated an Outperform rating on First Solar (NASDAQ:FSLR) stock with a $236.00 price target. The stock currently trades at a P/E ratio of 14.36 with a PEG ratio of 0.78, suggesting attractive valuation relative to growth prospects.

The firm noted that shares have declined since the company reported fourth-quarter 2025 earnings, which included an outlook below expectations due to tariff pressures. Despite the near-term headwinds, an InvestingPro tip highlights that First Solar holds more cash than debt on its balance sheet, with a minimal debt-to-equity ratio of just 0.07, positioning the company to weather uncertainty.

RBC Capital said shares are likely range bound in the near term without tariff policy clarity, which is expected in July. The firm said incremental downside risk exists from a possible facility closure in Southeast Asia if the company cannot find an offtaker.

The firm noted that shares now trade more in line with the historical average while peers trade at a premium. RBC Capital said it views consensus estimates as fairly conservative. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment, with additional insights available in the comprehensive Pro Research Report.

The firm said the recent decline and current valuation could mean downside from current levels is more limited.

In other recent news, First Solar has experienced several noteworthy developments. Guggenheim has lowered its price target for First Solar to $269 from $312, maintaining a Buy rating, following the release of the company’s fourth-quarter 2025 financial results. The firm has adjusted its financial model, leading to reduced estimates. Meanwhile, GLJ Research has downgraded First Solar to Hold from Buy, citing disappointing 2026 guidance that missed expectations for revenue, volumes, and EBITDA. Jefferies has also lowered its price target for First Solar to $187 from $205, maintaining a Hold rating due to concerns over inflationary logistics costs linked to the Middle East conflict. Additionally, Barclays has reduced its price target to $228 from $279 but retains an Overweight rating, reflecting a positive outlook despite valuation concerns. Jefferies has noted that Tesla’s plans to acquire $2.9 billion in solar manufacturing equipment from Chinese suppliers could put pressure on First Solar’s stock. These recent developments highlight the various factors influencing First Solar’s financial outlook and market position.

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