Shares of First Solar (FSLR), a key player in the S&P 500, saw a sharp 10% decline following securities analysts at Jefferies revising their price target for the company's stocks. This decision was guided by the concern that delays will have an adverse effect on the company's Q3 results. Jefferies reduced its price estimate from $271 to $266, while maintaining the same "buy" rating.
The analysts' note indicated their anticipation for First Solar's earnings to slightly fall short of predictions as product volumes perform lower than anticipated. Factors such as prospective delays from various factors, AD/CVD determinations affecting module pricing, and considerations on selling surplus Indian capacity into the US were mentioned.
The analysts acknowledged several challenges to utility-scale solar-power growth, like long interconnection queues, labor and supply-chain shortages, and prolonged delays. These issues are expected to continue into the next year with likely project push outs.
Despite predicting these near-term issues, Jefferies analysts express continued faith in First Solar's long-term potential. The implications of the Jefferies report also negatively affected other solar companies, like Enphase Energy (ENPH) and SolarEdge Technologies (SEDG), with their shares also experiencing a decline.