First Solar shares may be poised for fall: Barron's
NEW YORK (Reuters) - Shares of First Solar could take a hit if its customers turn away from the maker of solar panels in favor of lower-priced rivals, according to a report in Barron's.
As the Intersolar trade show starts in Munich, where the world's solar businesses discuss their next contracts, deals will likely adjust for the falling price of refined silicon -- "half the cost of goods at First Solar's rivals," the business weekly said in its May 25 edition. "One leading customer says it will ditch First Solar's 'thin-film' panels if crystalline silicon alternatives keep getting cheaper. That seems likely," the paper said. "Silicon prices are expected to drop another 30 percent by year end. First Solar profits -- and its shares -- could get cut in half." Shares of First Solar closed at $191.72 on Friday on Nasdaq.
