Jefferies downgrades First Solar on macro, tariff headwinds

Jefferies downgraded First Solar (FSLR) to Hold from Buy with a price target of $127, down from $202. The stock in morning trading is down 10%, or $13.60, to $123.64. The firm cites a weaker near-term backdrop. The company revised guidance to a range of worst case on the low end of elevated reciprocal tariffs and status quo at the high end, the analyst tells investors in a research note. Jefferies says margin compression remains a key concern as First Solar navigates the current environment. Given this backdrop, the firm expects better share entry points as the tariff situation evolves. While First Solar is doing its best to tackle near-term, headwinds, it “will be painful along the way,” says the firm.