星期三, 3月 3, 2021
Home PV News Why First Solar Stock Just Dropped 10%

Why First Solar Stock Just Dropped 10%

Barclays' double downgrade cratered the share price.

What happened

The stock of First Solar (NASDAQ:FSLR) was flaming out on Wednesday, down 9.8% as of 11:45 a.m. EST, and you can blame Barclays Capital.

This morning, the British investment bank threw major shade at this solar stock. Once bullish on the shares, Barclays reversed course today and downgraded First Solar two notches — all the way from overweight to underweight, assigning a target price of $49.  S

So what

What prompted the downgrade? To date, First Solar has demonstrated “an impressive ability” to book shipments of its Series 6 photovoltaic modules years ahead, Barclays said. Regardless, a review of industry data on 5,000 solar projects in the works or already completed tells the analyst that First Solar’s business is now “in trouble.”

Specifically, Barclays says the company’s systems business has lost 80% of its U.S. market share, TheFly.com reports, as competitors NextEra EnergyElectricite de France, and Invenergy steal away First Solar’s utility-scale business. Although First Solar’s module production business appears to be doing fine, the analyst thinks this “rapidly declining share” of the solar project market is reason enough to downgrade the stock over the near and medium term.

Now what

What’s bad news for First Solar, however, isn’t necessarily bad news for the entire U.S. solar industry — much less renewable energy stocks in general. In fact, Barclays took pains to explain that “this is not a bear call on U.S. solar, but simply a shift in who’s winning within the industry right now.”

And right now, that’s not First Solar.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

ComEd report finds investments in residential solar, energy efficiency benefit all customers

ComEd this week reported to the Illinois Commerce Commission (ICC) that residential customers are receiving savings and clean energy benefits from the Future Energy...

New Solar Access Act aims to implement automated solar permitting in most California cities

Senator Scott Wiener (D-San Francisco) introduced SB 617, the Solar Access Act. SB 617 implements automated solar permitting in local jurisdictions with over 10,000...

Biden administration restores amendments to Desert Renewable Energy Conservation Plan

California Energy Commissioner Karen Douglas released the following statement in response to the U.S. Department of Interior’s decision to revoke amendments to the Desert...

Missouri legislature considers taxing solar-powered households and businesses

The Missouri Solar Energy Industries Association (MOSEIA) announces that the state’s upcoming HB539 and SB178 bills, which seek to modify the state’s net-metering program,...