It's been a dark and stormy start to the new year for solar stock FTC Solar (NASDAQ:FTCI), which had plummeted nearly 20% from the start of 2022 through yesterday's close. And today isn't providing shareholders with any reprieve. As of 11:37 a.m. ET, shares of FTC Solar have declined 14.1%.
What's rattling the market's nerves today? An analyst's bearish take on the stock -- the second in as many weeks -- is motivating investors to click the sell button.
Finding a noteworthy potential for risk with an investment in FTC Solar, Julien Dumoulin-Smith, an analyst at Bank of America, downgraded the stock to underperform from neutral and slashed his price target to $5 from $9. According to Thefly.com, Dumoulin-Smith recognized "systematic and idiosyncratic factors that stack up against" the company as the basis for his bearish take on the stock.
Investors may be particularly sensitive to the analyst's concern, considering that another analyst, Kashy Harrison from Piper Sandler, cut the price target to $14 from $17 last week. However, Harrison maintained an overweight rating on FTC Solar's stock.
Those considering the addition of a renewable-energy stock to their holdings may be interested in FTC Solar now that its valuation has become more attractive. However, it would be wiser to wait.
Next Tuesday, FTC Solar's CEO Sean Hunkler will host a call to address the company's growth strategy. With some insight into the company's plans so close on the horizon, waiting to see what Hunkler -- who recently stepped into the role of CEO in late September -- has to say would be a smart move.