A Seeking Alpha analyst issued a Sell rating for First Solar, setting a fair value estimate between $170 and $180 per share. This valuation sits significantly below the stock's recent trading levels.
The report argues the market is incorrectly pricing Section 45X tax credits as permanent. These subsidies currently account for a substantial portion of the company's gross margin but are scheduled to phase out.
Revenue growth is increasingly driven by lower-priced sales in India. This geographic shift is diluting the company's average selling price.
This analysis follows an 11% stock decline in early June. That drop was triggered by broader incentive uncertainties and reports of insider selling.