Barron's Warns First Solar (FSLR) Could Drop 20-25% As Italy Cuts Back Due to Solar Glut

Shares of First Solar (Nasdaq: FSLR) could see pressure come Tuesday following reports over the weekend in Barron's which discusses the solar glut in Italy.

According to the article, Italy, a hotbed for solar installations, already hit its 2020 target for solar power and an Ecology Party leader is looking for a moratorium on new solar farms.

If European subsidies ease, analysts warn that First Solar shares could drop 20% to 25% from recent highs.

In addition to First Solar, other solar stocks could see pressure. Also mentioned in the article were SunPower (Nasdaq: SPWRA), Suntech Power Holdings (NYSE: STP), Yingli Green Energy (NYSE: YGE) and Trina Solar (NYSE: TSL).

Balancing out the negative Barron's piece is the surging price of crude oil due to unrest in the Middle East. Rising crude is seen as a benefit to alternative energy sources like solar.

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