First Solar (FSLR) Inks Key Supply Agreement With 5N Plus Inc.

First Solar (FSLR) recently saw its stock price surge by 31% over the last quarter. This impressive gain coincides with the announcement of a significant new supply agreement with 5N Plus Inc., highlighting plans to boost the production and delivery of key solar panel materials. Additionally, the company's updated guidance for 2025, which raises expectations for net sales and operating income, likely added confidence to investors. While the broader market showed mixed signals with the Dow Jones reaching highs and tech stocks slumping, First Solar's collaborative ventures and strong guidance likely fortified its positive momentum amidst a volatile market backdrop.

First Solar has 1 warning sign we think you should know about.

AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

First Solar's recent 31% surge in its stock price highlights the positive response to its new supply agreement with 5N Plus Inc., signaling strengthened production capabilities and updated 2025 guidance. This news potentially enhances First Solar's revenue and earnings forecasts, focusing investor confidence on its projected growth trajectory. Such strategic moves align with the company's narrative of leveraging U.S. manufacturing expansion and innovation in thin-film technology to solidify its competitive edge. The updated guidance, aiming for increased net sales and operating income, further underscores the company's intent to capitalize on favorable policy shifts and domestic capacity gains.

Over the past five years, First Solar has recorded a total shareholder return of 186.63%, reflecting robust growth amid evolving market conditions. However, compared to the last year, First Solar's performance underperformed the broader U.S. market and the semiconductor industry, both of which saw higher returns. Despite this, the company's long-term growth remains compelling, driven by its strategic focus and capacity expansions.

With a current share price of $219.33 and a consensus analyst price target of $215.83, First Solar trades slightly above the target. This minor deviation reflects nuanced analyst expectations and market sentiment. However, with potential risks, including policy uncertainties and competitive market pressures, investor evaluations of First Solar should weigh these projections against the company's execution of its strategic initiatives.

Our expertly prepared valuation report First Solar implies its share price may be lower than expected.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com