First Solar Inc. shares FSLR were declining more than 2% in Monday’s premarket activity after Citi Research analyst Vikram Bagri cut his rating on the stock to sell from neutral. He worries about a “challenging” long-term outlook for the company, which he calls the “undisputed leader in domestically made modules for utility scale solar in the U.S.” Bagri anticipates that global supply of polisilicon will “increase rapidly, which should lead to a pullback in its price and lower the cost of Si-based panels,” he wrote in a note to clients. “At the same time, we expect silicon-based PV [photovoltaic] module supply to increase substantially above demand levels both in the US and outside, which should put pressure on panel pricing.” He said it would be “relatively unattractive” for the company to export excess supply abroad given that the price of modules internationally is “substantially lower.” Bagri lowered his price target on the stock to $194 from $220.
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