The Rally of the First Solar Stock
The stock of First Solar is currently on a rally course, significantly fueled by a tariff decision as well as US punitive tariffs on Asian solar cells. These measures strengthen First Solar’s competitive position in the US market, as they increase the cost of importing cheap Asian solar modules and thereby raise the demand for domestically produced modules in the USA.
Current Price Development and Analyst Opinions
- Despite some short-term price corrections, the stock continues to show potential. For instance, the price reached a new 12-month low of about 105 EUR in early April 2025, which is, however, regarded as a temporary setback.
- Forecasts for the coming months are positive: For April to June 2025, prices are projected to be between around 128 USD at the beginning of the month and peak values of about 313 USD, with an anticipated average upward movement of over 20% over the year.
- Analysts see further growth potential in the long term with price targets significantly above the current level. Earnings estimates for the year suggest an increase in results of around 59% to about 21 USD per share.
Factors Behind the Rally
- The tariff decision in the USA creates a protectionist market environment in favor of domestic producers like First Solar.
- US punitive tariffs on Asian solar cells increase import costs from Asia and make First Solar’s products more competitive.
This combination of regulatory measures and positive earnings forecasts leads many investors to assess the stock as attractive and expect further upward potential.
Summary
First Solar is currently benefiting significantly from political decisions in the USA (tariffs and punitive tariffs), which improve its market position. Despite short-term fluctuations, the mid-term sentiment remains positive with significant price potential according to analyst estimates.