Why Morgan Stanley Cut First Solar's (FSLR) Target as Pricing Recovery Slows

First Solar, Inc. (NASDAQ:FSLR) is one of the 10 Best Renewable Energy Stocks to Buy Now. On March 2, 2026, Morgan Stanley maintained its Overweight rating on First Solar and cut its price target to $230 from $275. The firm said First Solar’s margin recovery appears slower than previously expected, and that 2026 pricing looks softer. Public summaries of the note also said Morgan Stanley lowered its 2026 shipment forecast to 17.6 gigawatts from 19.7 gigawatts and reduced its 2026 average selling price estimate to $0.287 per watt from $0.315.

For context, First Solar on February 24, 2026, reported fourth-quarter net sales of $1.7 billion and full-year 2025 net sales of $5.2 billion, up from $4.2 billion in 2024. The company said fourth-quarter sales increased from the prior quarter mainly because module volume sold increased, while full-year growth was driven by a 24% rise in third-party module volume. Fourth-quarter diluted EPS was $4.84, and full-year diluted EPS was $14.21.

First Solar ended 2025 with a $2.4 billion net cash balance, up from $1.5 billion at the end of the prior quarter. Management said the increase was primarily due to additional proceeds from sales of Section 45X tax credits and operating cash flow, partly offset by capital spending tied to its Louisiana facility. For 2026, the company guided for net sales of $4.9 billion to $5.2 billion, volume sold of 17.0 GW to 18.2 GW, and adjusted EBITDA of $2.6 billion to $2.8 billion.

First Solar, Inc. (NASDAQ:FSLR) designs and manufactures thin-film photovoltaic solar modules and serves customers mainly in the United States and other select international markets.

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