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Merriman Curhan Ford Downgrades First Solar (FSLR) to Neutral; 2H10 Outlook Uncertainty

February 19, 2010 7:15 AM EST
FSLR Hot Sheet
Rating Summary:
    7 Buy, 21 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Merriman Curhan Ford downgrades First Solar, Inc. (Nasdaq: FSLR) from Buy to Neutral.

Merriman analyst says, "We are downgrading to Neutral given the uncertain business outlook in 2H10 despite a strong 4Q09 and management reaffirming its 2010 earnings guidance. Solar module makers are expected to face revenue and margin volatility as a result of changing conditions in overcapacity and FiT policies. (We would note that solar inverters such as Power-One (Nasdaq: PWER) (Buy-rated) are less susceptible to such factors given current inverter shortages and represents an installed unit play versus installed modules that depends on price.) As a result, we believe FSLR shares remain range bound ($117-129)...We are reducing our FY10 revenue estimate to $2.75B from $2.80B and our EPS to $6.15 from $6.45, along with cutting to our FY11 EPS estimate to $7.70 from $8.25 (consensus at $7.85)."

To see all the upgrades/downgrades on shares of FSLR, visit our Analyst Ratings page.

First Solar, Inc. designs and manufactures solar modules using a thin film semiconductor technology.

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