- First Solar (NASDAQ:FSLR) -2.2% premarket and perhaps headed for its sixth straight daily decline after JMP Securities issues a two-notch downgrade to Underperform from Outperform and whacks its price target to a Street-low $46 from $87 in the wake of recent policy developments in China that have "shaken global markets" that likely will pressure margins past 2019.
- JMP expects pricing pressure will accelerate outside of the U.S., and even in the U.S. pricing may decline as Chinese suppliers look to compensate for a sharp drop in expected demand at home.
- Also, Guggenheim cuts FSLR price target to $62 from $74, as it expects solar PV prices to drop as a result of China’s shift.
- FSLR has fallen nearly 12% since Monday's announcement that China's government would cut subsidies and curb construction on new solar projects.
- Now read: Ultra Clean Holdings: Increasing Demand, Solid Fundamentals Make This Semiconductor Stock An Ideal Growth Candidate
Original article