Needham & Company Downgrades First Solar (FSLR) to Hold

Needham & Company downgraded First Solar (NASDAQ: FSLR) from Buy to Hold.

Analyst Y. Edwin Mok commented, "We are downgrading FSLR from Buy to Hold due to risks to 2016 earnings, substantially weaker margin trends ahead, post-ITC uncertainty in 2017 and slowed efficiency roll-out. Excluding the gains on the expected sales of the valuable Stateline project, the 2016 guidance was disappointing. We believe the substantially weaker than expected gross margins confirm poorer mix and weaker pricing, which we believe will further deteriorate in 2017 following the reduction of ITC. FSLR is taking a conservative approach to capacity and the roll-out of high efficiency technologies, which we view as limiting any upside to future estimates. We expect the stock to remain limited in the coming months and we move to the sidelines until we see better clarity of revenue growth and profitability."

For an analyst ratings summary and ratings history on First Solar click here. For more ratings news on First Solar click here.

Shares of First Solar closed at $58.85 yesterday.

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