First Solar Cuts 2025 Guidance, Analyst Bullish On Expectations Of Tax Credits Remaining Intact

First Solar Inc. FSLR reported downbeat first-quarter earnings on Wednesday.

While the stock came under pressure after the company reduced its 2025 guidance, it is likely to "materially outperform its peers," according to GLJ Research.

The First Solar Thesis: Analyst Gordon Johnson upgrades the rating from Hold to Buy while raising the price target to $172.37.

The First Solar Thesis: Management lowered their 2025E revenue from $5.3-$5.8 billion to $4.5-$5.5 billion and adjusted earnings to $12.50-$17.50 per share to $17.00-$20.00 per share, Johnson said in the upgrade note.

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The low-end of First Solarguidance is very conservative and "assumes the worst," the analyst stated. The guidance assumes "Trump's reciprocal tariffs are resumed in both Vietnam and Malaysia, meaning up to 12GW of contract cancellations," he wrote.

This suggests that further downward revisions to the guidance are "far less likely," Johnson said.

While there is uncertainty around the Trump administration's next move, the 45x production-tax credits (PTC) are likely to remain "largely intact," he added.

FSLR Price Action: Shares of First Solar had risen by 1.48% to $127.68 at the time of publication on Thursday.

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