On the back of Jefferies analyst Julian Dumoulin-Smith’s decision to lower First Solar’s rating from Buy to Hold, the company’s shares plunged more than 10% in a single session. The price target was cut to $260 from $269, reflecting concerns over limited visibility into forward bookings and the likelihood of further guidance revisions. Trading volume surged to roughly three times the three-month daily average of 2.1 million shares, signaling institutional repositioning and heightened risk aversion among large investors.

First Solar has experienced a spate of project debookings over the past year, leading management to reduce full-year module shipment guidance twice in the last six months. The cancellations have eroded confidence in growth forecasts, with net bookings down by an estimated 15% year-over-year through the third quarter. Gross margin remains near 40.3%, but analysts warn that persistent cancellations may force further margin compression if production volumes fail to ramp as planned.

Jefferies highlighted uncertainties around U.S. Section 232 tariff relief, noting potential carve-outs for major European markets that could dilute the anticipated price lift for domestic manufacturers. Meanwhile, international manufacturing facilities continue to operate under tariff constraints, squeezing incremental returns. Although First Solar is projected to remain free-cash-flow positive in 2026, the firm sees meaningful cash generation delayed beyond mid-year, limiting near-term upside catalysts for the stock.