RBC Capital Markets has cut its price objective for First Solar (NASDAQ:FSLR) to $236 from $258 but is maintaining an Outperform rating on the stock. At the time of the note, First Solar shares were trading at $213.73, below InvestingPro's Fair Value estimate of $259.64.
The analyst house flagged tariff policy as a notable pressure point for the company's near-term outlook. RBC said the firm's 2026 outlook now sits beneath prior expectations largely because of incremental curtailment activity. Nevertheless, RBC characterized that curtailment as a clearing event that should position First Solar for a rebound in volumes in the following year.
According to RBC, First Solar's operational playbook this year involves regional curtailments in Southeast Asia (SEA) combined with deliberate underproduction across its operations as a way to bring inventories into better balance. RBC expects these actions to strengthen the company's inventory position and improve its positioning heading into 2027.
The company is reportedly continuing to emphasize technological advancement as part of its long-term strategy. RBC noted that First Solar is making incremental investments in perovskites alongside other technology efforts.
Reflecting the anticipated reduction in production and sales volumes, RBC lowered its 2026 and 2027 estimates. The revised price target to $236 is a direct consequence of those estimate cuts.
RBC's analysis assumes that no further tariffs will be imposed after the expiration of Section 122. Despite the acknowledged near-term headwinds, First Solar retains a "GREAT" financial health score on InvestingPro, supported by robust profitability metrics including a 40.6% gross margin.
Investors who want more detailed projections and modeling can consult the InvestingPro Pro Research Report, which the firm makes available for FSLR and for more than 1,400 U.S. equities.
First Solar's own guidance for 2026 has prompted a range of broker responses. The company projected 2026 revenue in a $4.9 billion to $5.2 billion range, which the note said is roughly 18% below consensus estimates.
Following that guidance, UBS lowered its price target on First Solar from $330 to $300, attributing the revision to expected international volume declines and transitions in tooling. Needham left a Buy rating in place with a $303 price target, while Barclays maintained an Overweight rating but adjusted its target to $279 and pointed to Southeast Asia curtailments as the primary driver of the revenue shortfall. William Blair reiterated a Market Perform rating and highlighted the role of U.S. tariff and subsidy policy in the company's uncertain near-term outlook. Baird moved to downgrade the stock to Neutral from Outperform and reduced its target to $205, citing mixed quarterly results and ongoing uncertainty about First Solar's future trajectory.
These broker moves illustrate how First Solar's guidance and policy-related risks have translated into a range of valuation reactions among analysts, even as the company pursues inventory discipline and continued investment in technology to support longer-term positioning.