Overview
- First Solar fell roughly 10% on Jan. 7 after Jefferies downgraded the stock to Hold and cut its price target to $260.
- Jefferies pointed to limited visibility into 2026 bookings, noting recent customer cancellations and a book-to-bill near 0.5x.
- Reported gross margins dropped to about 11% in 2025 from roughly 20% a year earlier, with economics heavily reliant on tax credits.
- Trading showed signs of institutional de-risking with a gap-down open on heavy volume and a bearish options skew, following a ~90% rally since March 2025.
- Analyst views remain split, as Deutsche Bank raised its target to $300 with a Buy rating while the consensus sits at Moderate Buy with a mean target near $272.