Key Highlights
- FSLR shares surged 7.73% to $263 during after-hours trading on Thursday following the Trump administration’s announcement of Section 232 trade actions on Chinese polysilicon.
- The trade actions consist of a 15% tariff coupled with minimum pricing requirements for imports, effective December 4.
- Wells Fargo increased its price objective to $313 from $300 while keeping an overweight designation.
- The company delivered Q2 earnings per share of $3.92, surpassing analyst expectations of $2.90 by more than a dollar.
- A class-action securities lawsuit has been initiated, with August 24 marked as the deadline for lead-plaintiff motions.
Shares of First Solar (FSLR) finished Thursday’s regular trading session at $244.14, climbing 3.10%, before experiencing an additional 7.73% surge to $263 during extended hours.
The stock’s rally followed the Trump administration’s unveiling of Section 232 trade actions directed at Chinese polysilicon imports through provisions of the Trade Expansion Act.
These trade actions encompass a 15% tariff alongside minimum pricing thresholds for polysilicon and related downstream materials. Implementation is slated for December 4.
Chinese manufacturers currently dominate over 90% of worldwide polysilicon production. First Solar has characterized this market concentration as a national security concern linked to forced labor practices and predatory pricing strategies.
Chief Executive Mark Widmar described the trade action as “among the most strategically important trade policies in recent decades.” He emphasized that the enforcement framework is structured to prevent circumvention tactics historically employed by China-connected supply networks.
First Solar has openly endorsed these trade measures, positioning the company favorably. The firm utilizes proprietary cadmium-telluride thin-film technology and maintains complete independence from Chinese crystalline silicon supply chains.
The company maintains five manufacturing facilities throughout Alabama, Louisiana, and Ohio, with an additional facility currently being built in South Carolina. First Solar anticipates investing more than $5 billion in domestic production capabilities and research initiatives by the end of this year.
The company has set a goal of reaching approximately 17 gigawatts of US-based module production capacity by 2027.
Wall Street Analysts Boost Price Projections
Wells Fargo elevated its price objective for FSLR to $313 from $300 on Friday, reaffirming an overweight recommendation. The financial institution indicated that the tariff structure and minimum pricing policy may yield stronger advantages than initial projections suggested.
Citigroup analyst Vikram Bagri sustained a Buy rating on Monday while increasing his target to $297 from $294. Guggenheim’s Joseph Osha similarly maintained a Buy designation, raising his objective to $282 from $279.
Truist Financial preserved a hold rating while reducing its target to $229 from $249. Oppenheimer continues with a market perform stance. The Street consensus reflects a Moderate Buy rating with a mean price target of $254.89.
Second Quarter Results Exceed Expectations Despite Revenue Decline
First Solar announced Q2 earnings of $3.92 per share, exceeding the consensus projection of $2.90 by more than $1. Quarterly revenue totaled $1.056 billion, slightly missing the anticipated $1.062 billion.
Revenue decreased 3.4% compared to the prior year period. Wall Street analysts are forecasting full-year earnings per share of $17.75.
During the last three months, company insiders divested a combined 38,505 shares valued at approximately $9.4 million, with CEO Widmar offloading 9,926 shares in May.
The equity trades within a 52-week band of $176.47 to $320.95 and has appreciated 31.96% over the trailing twelve-month period.
Another development warrants attention. Multiple law firms have announced a securities class-action complaint alleging insufficient disclosure regarding manufacturing underutilization and domestic production costs. The deadline for lead-plaintiff applications is set for August 24.
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