Overview
- Jefferies’ Julien Dumoulin-Smith cut First Solar to Hold and lowered the price target to $260, pointing to weaker bookings and recent debookings.
- Shares fell more than 10% on Jan. 7 on heavy volume, with trade mechanics described as institutional derisking after a roughly +90% rally since March 2025.
- Analysts flagged margin pressure, with gross margin around 11% in 2025 versus roughly 20% a year earlier and profits increasingly tied to tax credits.
- Demand uncertainty includes a book-to-bill near 0.5x and reported cancellations tied to a BP affiliate, underscoring counterparty risk.
- Views remain split as Deutsche Bank raised its target to $300 and kept a Buy, leaving consensus around a Moderate Buy despite near-term execution concerns.