Oppenheimer downgrades First Solar on policy uncertainty after Q1 miss

Oppenheimer downgraded First Solar (FSLR) to Perform from Outperform without a price target following the Q1 miss. With tariff and tax policy uncertainty hanging over its business, First Solar is “taking a hard line on plans for managing through the situation,” the analyst tells investors in a research note. The firm says management indicated a willingness to idle capacity should President Trump’s reciprocal tariffs take effect without cost sharing from customers. First Solar also indicated an inability to begin negotiations with customers until it had better visibility to both potential tariff and Inflation Reduction Act adjustments. Opco believes uncertainty on timing of policy resolution suggest the low-end of the company’s 2025 guidance is a “realistic scenario.” It downgrades First Solar to hold pending further policy clarity.