First Solar Sinks After Jefferies Downgrade on 2026 Booking Worries

Overview

• Shares fell more than 10% on January 7 after Jefferies cut the rating to Hold from Buy.
• The firm pointed to limited visibility on next year's bookings, reduced policy tailwinds after recent legislative changes, and potential margin pressure from logistics and facility underutilization.
• Analysts and company data highlight operational strains including gross margins near 11% in 2025 versus about 20% a year earlier and a book-to-bill ratio around 0.5x with cancellations from a BP affiliate.
• Trading reflected institutional derisking, with a gap down from $268.78 to $254.02 on heavy volume and a put/call ratio near 1.94, in a stock with high institutional ownership.
• Despite the setback, shares remain roughly 100% above their 52-week low, the stock trades around 11.5x forward earnings with a strong balance sheet, and the Street consensus stays at Moderate Buy with a mean target near $272.