Canaccord Adams analyst Jonathan Dorsheimer reduced the First Solar (NYSE:FSLR) rating from buy to hold after yesterday’s analyst meeting organized by the First Solar. Dorsheimer sees the price target still at $180. Consequently, the First Solars shares are sliding down fourty-five minutes after the opening of New York Stock Exchange (-2.5% at 10:18 AM). (update: at the end of the day, FSLR lost 6.84 %)
In the analyst conference yesterday, First Solar Inc said it expected to cut manufacturing costs by a third or more over the next five years. First Solar President Bruce Sohn said the company’s manufacturing costs would fall from 93 cents (2009Q1) to between 52 cents and 63 cents per watt by 2014.
First Solar produces currently the cheapest available solar panels. Unfortunately, the panels produced are not as efficient as the most efficient panels. The company expects to be able to raise the efficiency from the current 10.9 % to 12.5 % during the next years. This would still lag behind the results provided by the competitors as, for example, SunPower Corp. has produced panels with conversion efficiency of 19.3 %.