Shares of First Solar, Inc. (NASDAQ: FSLR) were already hit hard yesterday. They are under pressure again this morning. It isn’t just lower and lower energy prices and a slower and slower economy taking a toll on the stock. This is due to an analyst downgrade. It’s actually a pretty big one.
Citigroup slashed its rating to hold from buy. The price target wascut to $170 from $205 as well. The firm’s note put the downside onthe stock at under $100 and said it could go to $200 on the upside.
Citi noted that Q4 would look OK or good, but it has concerns about inventories, margin compression, and industry oversupply.These issues are expected for the duration of 2009 regardless of thestimulus package which is supposed to favorable to alternative energysuppliers.
First Solar shares fell about 9% yesterday and are down another 5% at$141.50 in pre-market trading on about 37,000 shares. Its 52-weektrading range is $85.28 to $317.00.
Jon C. Ogg
January 13, 2009