First Solar Has a Bright Near-Term Outlook That Could Dim
The firm faces stiff competition from inside and outside the industry.
First Solar (FSLR) is well positioned to capitalize on worldwide solar energy growth, especially in the United States, where state policies and corporate demand are creating a large market. But management's ability to maintain efficient operations, leading technology, and good customer relationships will determine whether investors benefit from this growth potential.
First Solar has used a slow and steady approach to become the world's leading manufacturer of cadmium telluride, also known as thin-film, solar panels. Demand is so strong that First Solar already has contracted out two years of its current production capacity.
Travis Miller does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.