First Solar (NASDAQ:FSLR) stock is losing ground on Monday after the solar power company’s shares got a downgrade from Citi.
Analyst Vikram Bagri is behind today’s news after dropping FSLR stock from a “neutral” rating to a “sell” rating. For comparison, the analyst consensus rating for FSLR shares is a “moderate buy” based on 20 opinions.
To go along with that downgrade, the Citi analyst also dropped his price target for FSLR stock from $220 per share to $194. That’s a potential 10.6% drop from the stock’s close on Friday. It’s also below the analyst consensus price target of $207.48 per share.
Why the Bearish Stance on FSLR Stock?
Here’s a portion of Bagri’s note to clients obtained by CNBC:
“Global excess supply of polysilicon and PV modules should put downward pressure on module ASPs, limiting FSLR’s ability to contract volumes beyond 2026 at attractive prices […] Furthermore, US domestic module supply is likely to exceed demand starting 2026.”
While today’s rating is dropping FSLR stock, it hasn’t led to heavy trading of the shares yet. As of this writing, some 800,000 shares have changed hands. For comparison, its daily average trading volume is closer to 2.3 million shares.
FSLR stock is down 6.7% as of Monday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
