Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

First Solar Drops to Lowest in Four Years on Germany Slump

Oct. 12 (Bloomberg) -- First Solar Inc., the largest thin-film solar panel maker, sank to a four-year low on concern that Germany, the world’s biggest market for power from the sun, won’t provide a year-end surge.

First Solar fell 3.5 percent to $53.93 at 8:31 a.m. in premarket trading on the Nasdaq Stock Market. The shares have dropped 59 percent this year and are trading at their lowest since March 2007.

Paul Leming, an analyst at Ticonderoga Securities in New York, downgraded First Solar to “sell” from “neutral” in a report today because an expected surge in installations ahead of a planned reduction in German subsidies hasn’t materialized and further cuts may be gaining political support.

“Thin-film module prices are now at or below 90 cents per watt, a level at which First Solar’s module manufacturing is at best break-even after operating expenses,” Leming said in a note to clients.

Leming reduced his 2011 profit estimate to $8 a share from $8.23 a share, and for 2012 to $6.30 from $7 a share. He expects 2013 earnings will fall short of that and initiated a 12-month price target of $40 a share.

To contact the reporter on this story: Christopher Martin in New York at cmartin11@bloomberg.net.

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.