First Solar continues higher, outshining peers while others struggle

First Solar (NASDAQ:FSLR) +0.9% in Tuesday’s trading as the stock continues to outperform peers, which are set to close broadly lower a day after Swiss solar panel maker Meyer Burger said it was abandoning plans to set up a solar cell factory in Colorado as “no longer financially viable due to recent developments.”

First Solar (FSLR) stands out against the solar producing pack, gaining 36% YTD to ~$235, placing the stock on pace for its best year since 2022, while SolarEdge Technologies (SEDG) has tumbled 72%, Enphase Energy (ENPH) has slipped 6.5%, Nextracker (NXT) has dropped 11%, Array Technologies (ARRY) has sunk 60%, and SunPower (OTC:SPWRQ) filed for Chapter 11 bankruptcy earlier this month.

First Solar (FSLR) scored better than expected earnings for both Q2 and Q1 this year, and CEO Mark Widmar said after the latest earnings results that the company boasts a “robust pipeline of demand” and solid bookings.

Most analysts are bullish on the stock in a challenging time for the sector, according to Angela Palumbo at Barron’s, noting 30 out of 38 analysts surveyed by FactSet rate the stock a Buy with 8 calling it a Hold, and no Sell recommendations.

First Solar’s (FSLR) “differentiated thin-film technology, combined with solid growth prospects and strong visibility backed by a backlog with orders extending through 2030E, make it a compelling investment opportunity,” Clarksons analyst Roald Hartvigsen wrote August 14 in initiating coverage with a Buy rating and $270 price target.

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