BofA Cuts First Solar (FSLR) from Buy to Underperform, Sees 30% Decline from Here

Certainly not helping stock performance in the solar sector Monday, analysts at BofA/Merrill Lynch downgraded shares of First Solar (NASDAQ: FSLR) by two notches from Buy to Underperform earlier. The firm now sees First Solar shares around $35 in 12 months, down sharply from a prior price target of $85.

The firm cited the recent departure of CEO Rob Gillette, as well as continued pricing pressure in the company's module business.

BofA slashed its FY12 EPS estimate on First Solar by a whopping 56 percent from $9.84 to just $4.35 and its FY13 estimate from $11.56 to $6.23. The analyst consensus currently sits at $7.61 for FY12 and $9.49 for FY13.

With shares of First Solar down 7.5 percent to $49.91 at last check, BofA's new price target implies potential downside of about 30 percent.

For more ratings news on First Solar click here and for the rating history of First Solar click here.

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