Barclays analyst Moses Sutton double downgraded First Solar (FSLR) to Underweight from Overweight with a price target of $49, down from $66. The stock in premarket trading is down 5% to $55.98. After assessing industry data on 5,000 projects, both operational and in the company's pipeline, the analyst believes First Solar's Systems business "is in trouble." This is not a bear call on U.S. Solar, and First Solar's module business is not at risk, Sutton tells investors in a research note. However, its Systems business has lost 80% of its U.S. market share, with NextEra Energy (NEE), EDF and Invenergy gaining share, says the analyst. Sutton expects First Solar's "rapidly declining share" of the U.S. downstream project market to cause a downward re-rating of the shares.

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Wells Fargo upgraded First Solar to Overweight from Equal Weight with a price target of $250, up from $187. The firm says that as the solar sector continues to struggle due to several headwinds, it is getting more defensive with its ratings. Wells upgrade First Solar due to its relative stability and several potential catalysts. The firm downgraded Sunnova Energy (NOVA) as interest rates may stay higher for longer. First Solar is sold out through 2026, which provides near-term earnings stability, the analyst tells investors in a research note. The firm also sees a number of potential catalysts on the horizon from the lifting of bifacial exemptions, further trade barriers on Chinese panels, restricting Inflation Reduction Act credits and a potential Trump presidency.