Why First Solar Shares Dropped: Insights Into Market Challenges and Analyst Updates
Explore the recent market movements affecting First Solar and other solar companies, highlighting analyst insights on potential delays and their impact on earnings.
With over 25 years of expertise, Bill McColl brings seasoned reporting from TV, radio, and digital platforms, delivering comprehensive coverage on major news events.
Key Highlights
- Solar industry stocks experienced a downturn following Jefferies' revision of First Solar's price target, citing concerns over upcoming quarterly profits.
- Jefferies' research points to possible delays that could reduce First Solar's product shipment volumes.
- Despite lowering the price target from $271 to $266, Jefferies retains a "buy" recommendation for First Solar.
On Thursday, First Solar (FSLR) saw a significant 10% drop, marking it as the S&P 500's weakest performer during intraday trading. This decline followed Jefferies' announcement of a reduced price target due to anticipated delays impacting quarterly results.
Jefferies analysts emphasize that First Solar's earnings might slightly underperform estimates, influenced by lower-than-expected product volumes. Factors include potential delays from various causes, effects of anti-dumping and countervailing duties (AD/CVD) on module pricing, and considerations regarding excess capacity sales from India to the U.S.
Challenges in Solar Power Expansion
The solar sector continues to face obstacles such as extended interconnection queues, supply chain disruptions, and labor shortages, leading to project postponements that may last from weeks to months into the next year.
Nonetheless, analysts maintain a positive long-term outlook for First Solar, optimistic about its prospects despite short-term execution hurdles.
Jefferies’ updated report also influenced other solar stocks, with Enphase Energy (ENPH) and SolarEdge Technologies (SEDG) experiencing declines of nearly 6% and 5%, respectively.
Discover the latest news and current events in Markets News as of 15-10-2024. The article titled " Why First Solar Shares Dropped: Insights Into Market Challenges and Analyst Updates " provides you with the most relevant and reliable information in the Markets News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.
The information in " Why First Solar Shares Dropped: Insights Into Market Challenges and Analyst Updates " helps you make better-informed decisions within the Markets News category. Our news articles are continuously updated and adhere to journalistic standards.