What Happened?
Shares of solar panel manufacturer First Solar (NASDAQ:FSLR) fell 8.5% in the morning session after Jefferies analyst Dushyant Ailani lowered the stock's price target from $271 to $266 and expects the stock to underperform during the third-quarter earnings season, given lower volumes. He also expressed concerns regarding large-scale solar energy projects due to "long interconnection queues, supply chain, and labor shortages."
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy First Solar? Access our full analysis report here, it’s free.
What The Market Is Telling Us
First Solar’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
First Solar is up 20.2% since the beginning of the year, but at $207.30 per share, it is still trading 31.1% below its 52-week high of $300.71 from June 2024. Investors who bought $1,000 worth of First Solar’s shares 5 years ago would now be looking at an investment worth $3,661.
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