Citi cuts First Solar target to $189 after ‘underwhelming’ Q1

Citi analyst Vikram Bagri lowered the firm’s price target on First Solar to $189 from $194 and keeps a Sell rating on the shares following the "underwhelming" quarter. The company missed Q1 expectations by a wide margin primarily due to seasonality and timing but it reiterated its full year guidance, the analyst tells investors in a research note. New bookings declined while pricing improved quarter-over-quarter, says the firm. It says further capacity expansions will require outside capital until Inflation Reduction Act benefits fully ramp. While equity cannot be ruled out for expansions, it remains unlikely per management, says Citi.