First Solar price target lowered to $230 from $260 at BMO Capital

BMO Capital lowered the firm’s price target on First Solar (FSLR) to $230 from $260 but keeps an Outperform rating on the shares after its Q4 results and guidance. The stock has been under significant pressure year-to-date due to concerns over FY25 guidance and risk perception of warranty expense, but the updated commentary and filings proved concerns around warranty issue were unfounded and FY25 revenue guidance was much better than feared, the analyst tells investors in a research note. BMO notes however that First Solar’s logistics costs are running materially higher than the company’s prior outlook due to more prior period unsold inventory, slower conversion from production to sales, and a need to sell Indian modules into the U.S.