Jefferies analyst Julien Dumoulin-Smith lowered the price target for First Solar to $187 from $205. The firm maintains a Hold rating on the shares.
Rising logistics costs stemming from Middle East conflicts drove the revision. Jefferies expects these inflationary pressures to negatively impact profit margins in fiscal year 2026.
These external cost pressures create significant near-term headwinds for the manufacturer. The outlook compounds existing concerns regarding the company's conservative 2026 guidance issued earlier this year.
First Solar remains a projected long-term beneficiary of U.S. domestic manufacturing incentives despite these immediate profitability risks.