First Solar Price Target Cut by Jefferies as Logistics Inflation Threatens Near-Term Margins

"Jefferies lowered its price target on First Solar stock to $187 from $205 while keeping a Hold rating on the shares, indicating a significant reset for a stock already under pressure."

"Dumoulin-Smith's core concern is logistics inflation tied to the Middle East conflict, which he sees filtering through the solar supply chain and pressuring margins industry-wide."

"First Solar's 2026 guidance already embeds $115 million to $155 million in underutilization costs and $110 million to $120 million in production start-up expenses, which are compounded by logistics inflation."

"First Solar is America's largest domestically manufactured solar module producer and the only fully vertically integrated U.S. solar manufacturer, using proprietary thin-film CdTe semiconductor technology."

Jefferies analyst Julien Dumoulin-Smith reduced First Solar's price target from $205 to $187, citing concerns over inflationary logistics costs affecting margins. The firm anticipates these costs will impact the solar supply chain, including First Solar, which has already projected significant underutilization and production start-up expenses for 2026. First Solar's stock has declined 26% year-to-date, trading at $193, raising questions about whether the current challenges are fully reflected in the stock price. The company's domestic manufacturing position offers some advantages but does not shield it from global cost pressures.

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