Jefferies Comments on Reports First Solar (FSLR) Topaz Sale to Enbridge Falters

October 25, 2011 8:39 AM EDT
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Analysts at Jefferies noted an article in SparkSpread Monday afternoon which stated that First Solar's (NASDAQ: FSLR) sale of Topaz project (550MW AC) to alleged potential buyer Enbridge has faltered.

It is unknown why Enbridge backing off, if other potential buyers are lined up and what impact this would have on the project price.

The firm said despite the negative headlines, they believe the company should be able to sell the Topez project at there are likely multiple bidders. However, the firm notes as with the Sunlight project, revenue recognition may be an issue given permitting delays. While there is no lack of buyers, the bigger issue for the company is the rapidly falling price of polysilicon, and the lower prices of c-Si
panels.

"If FSLR is unable to sell through its production, we would speculate it could acquire project pipeline similar to WFR's (NYSE: WFR) recent acquisition of Fotowatio."

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

Shares of First Solar closed at $57.95 yesterday.


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