Why First Solar Stock Burned Shareholders on Thursday
Shares of solar panel manufacturer First Solar (NASDAQ: FSLR) are down more than 9% headed into Thursday's close, upended by an analyst's lowered price target, the second such revision this week. Another solar power stock was also sent markedly lower today by a different analyst's downward price target adjustment for related reasons.
Although Jefferies analyst Dushyant Ailani still considers First Solar stock a buy, he lowered his price target from $271 to $266 on concerns that the company's upcoming third-quarter results could be disappointing. Ailani's specifically concerned by labor shortages and supply chain challenges that could ultimately postpone revenue for the Solar panel maker.
These worries echo those voiced by Bank of America analysts on Tuesday. While BofA also remains bullish on First Solar in the long run, it, too, believes near-term complications will stymie the company's results. Bank of America dialed back its price target for First Solar shares from $343 to $321.
Source Fool.com
