Key Takeaways
- Shares of FSLR surged 7.73% to $263 during after-hours trading Thursday following the Trump administration’s unveiling of Section 232 tariffs on polysilicon imports from China.
- The new trade policy features a 15% tariff alongside minimum pricing requirements for imports, scheduled to launch December 4.
- Wells Fargo upgraded its price target from $300 to $313 while keeping its overweight rating intact.
- The company delivered Q2 earnings per share of $3.92, exceeding Wall Street’s $2.90 forecast by more than a dollar.
- A class-action securities lawsuit has been initiated, with the lead-plaintiff application deadline set for August 24.
Shares of First Solar (FSLR) concluded Thursday’s regular trading session at $244.14, reflecting a 3.10% gain, before climbing an additional 7.73% to reach $263 in extended trading.
The stock’s momentum accelerated following the Trump administration’s announcement of Section 232 trade actions aimed at polysilicon imports from China, invoking authority under the Trade Expansion Act.
These trade actions encompass a 15% tariff combined with minimum pricing thresholds for polysilicon and related downstream products. Implementation is slated for December 4.
China maintains control over more than 90% of worldwide polysilicon production. First Solar has characterized this market dominance as a national security concern, pointing to forced labor risks and predatory pricing practices.
Chief Executive Mark Widmar described the policy as “among the most strategically important trade actions in recent decades.” He emphasized that the enforcement framework is structured to eliminate loopholes previously exploited by China-affiliated supply networks.
First Solar openly supported these measures, which align perfectly with its business model. The company utilizes proprietary cadmium-telluride technology and maintains independence from Chinese crystalline silicon supply chains.
The firm runs five manufacturing facilities across the United States in Alabama, Louisiana, and Ohio, with a sixth facility currently being built in South Carolina. By the end of this year, First Solar anticipates investing more than $5 billion in domestic production capacity and research and development.
The company has set a goal of reaching roughly 17 GW of US module manufacturing capacity by 2027.
Wall Street Analysts Increase Price Targets
On Friday, Wells Fargo elevated its price objective for FSLR from $300 to $313, maintaining its overweight stance. The firm noted that the tariff structure and price floor mechanism could yield stronger benefits than initially projected.
Citigroup analyst Vikram Bagri reaffirmed his Buy rating Monday, adjusting his target upward to $297 from $294. Guggenheim’s Joseph Osha similarly maintained a Buy rating while increasing his price objective to $282 from $279.
Truist Financial retained its hold rating but reduced its target to $229 from $249. Oppenheimer continued with a market perform rating. The Street consensus stands at Moderate Buy with an average price target of $254.89.
Second Quarter Results Exceed Expectations Despite Revenue Decline
First Solar disclosed second quarter earnings of $3.92 per share, surpassing the analyst consensus of $2.90 by more than a dollar. Quarterly revenue totaled $1.056 billion, slightly missing the $1.062 billion projection.
Revenue declined 3.4% compared to the same period last year. Wall Street analysts are forecasting full-year earnings per share of $17.75.
During the last three months, company insiders offloaded a combined 38,505 shares valued at approximately $9.4 million, with CEO Widmar selling 9,926 shares in May.
The stock trades within a 52-week range of $176.47 to $320.95 and has appreciated 31.96% over the trailing twelve months.
One additional development warrants attention. Multiple law firms have announced a securities class-action lawsuit claiming insufficient disclosure regarding production capacity underutilization and domestic manufacturing transition expenses. The deadline for lead-plaintiff motions is August 24.
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