Jefferies Remains Cautious on First Solar (FSLR), Cuts Target to $260

The share price of First Solar, Inc. (NASDAQ:FSLR) fell by 7.7% between December 31, 2025, and January 7, 2026, putting it among the Energy Stocks that Lost the Most This Week.

First Solar, Inc. (NASDAQ:FSLR) is a leading American solar technology company and global provider of responsibly produced eco-efficient solar modules.

First Solar, Inc. (NASDAQ:FSLR) received a blow on January 7 when Jefferies downgraded the stock from ‘Buy’ to ‘Hold’, while also reducing its price target from $269 to $260. The firm remains cautious on FSLR in 2026 as it doesn’t see the company improving its bookings, a key aspect of its business. Moreover, the analyst highlighted how the solar firm’s management lowered its guidance several times last year. He now expects these headwinds to ‘underwhelm investor expectations’, especially with the sharp decline in prices in Germany. As a result, the analyst sees limited upside for the stock.

However, not all analysts are as cautious: on January 7, Deutsche Bank significantly raised its price target on First Solar, Inc. (NASDAQ:FSLR) from $255 to $300 and maintained its ‘Buy’ rating on the shares.

While we acknowledge the potential of FSLR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.