Jefferies lowered its price target on First Solar (NASDAQ: FSLR) to $187 from $205, while maintaining a Hold rating, citing concerns around near-term margin pressures.
The firm highlighted rising logistics costs across the solar industry, driven in part by geopolitical tensions in the Middle East, as a key risk that could impact margins in the near term. The extent and duration of these pressures remain uncertain, leading Jefferies to reduce its fiscal 2026 margin assumptions.
The analyst also pointed to ongoing policy developments, including monitoring Section 337 actions related to TopCon technology and expected updates on Section 232 tariffs in May.
Additionally, Jefferies suggested that Southeast Asian manufacturing capacity could face shutdowns in the second quarter.
Given these near-term headwinds, including margin pressure and a subdued backlog outlook, the firm indicated it remains cautious on the stock.
