Expanded US Manufacturing and Long-term Contracts Might Change The Case For Investing In First Solar (FSLR)

• Recently, J.P. Morgan maintained a positive outlook on First Solar and raised its analyst rating following the company's announcement of expanded manufacturing capacity and long-term sales contracts through 2030.
• This move highlights market confidence in First Solar's approach to addressing both technical challenges and evolving global trade risks while securing future revenue streams.
• Next, we will consider how First Solar’s expanded US manufacturing and long-term contracts could influence its investment outlook.

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First Solar Investment Narrative Recap

To be a First Solar shareholder, you need to believe that US-led industry policy will continue to boost domestic solar manufacturing, maintaining demand for advanced, non-China-based modules. While J.P. Morgan’s raised outlook and the company’s expanded capacity reinforce investor optimism, short-term challenges such as technical issues with Series 7 modules and evolving trade policy create near-term uncertainty, but do not materially alter the primary catalysts or risks, policy support and competitive positioning remain central to the story.

Among recent developments, First Solar’s plan to ramp up American manufacturing capacity to 14 GW by 2026 is especially relevant. This expansion directly supports its ability to tap into favorable US incentives and reduce reliance on volatile international supply chains, serving as a practical catalyst tied to policy-driven demand for domestically produced solar modules.

However, investors should be aware that despite expansion and sales growth, the company still faces the possibility of...

Read the full narrative on First Solar (it's free!)

First Solar's outlook anticipates $7.0 billion in revenue and $3.2 billion in earnings by 2028. This reflects a 17.4% annual revenue growth rate and an increase in earnings of $1.9 billion from the current level of $1.3 billion.

Uncover how First Solar's forecasts yield a $220.16 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Twenty-five Simply Wall St Community fair value estimates range from US$142 to US$293 per share, with some signaling sizeable discounts to current levels. With US policy incentives as a prominent catalyst in the baseline narrative, these varied outlooks show how participant expectations may shift if support changes, consider exploring these viewpoints before forming your own opinion.

Explore 25 other fair value estimates on First Solar - why the stock might be worth 33% less than the current price!

Build Your Own First Solar Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your First Solar research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free First Solar research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Solar's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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