Kaufman is are lowering their '08 and '09 EPS estimates on SPWRA, due to falling panel prices, falling raw material prices, expected reductions in government solar subsidies, declining tax revenues and expectations that SPWRA will somehow fund its own customers in order to keep up factory utilization rates. They've lowered their 2008 GAAP EPS estimates to $1.28 from $1.33 (may not be comparable vs $2.25 consensus), due to lower expected gross profit margins in 4Q08. They are lowering their SPWRA target to $43 from $105... They believe First Solar will receive collateral damage from the panel pricing and raw material declines affecting the silicon-based panel makers and the credit issues affecting everyone. They believe that as the silicon-based panel makers and the silicon solar wafer makers force price cuts throughout the channel, it will put downward pressure on FSLR's profit margins and sales. They've lowered their '09 rev estimate to $1.66 billion from $1.85 billion and fully taxed 2009 EPS estimate to $4.89 from $5.74 (vs $2.05 bln/$7.35 consensus respectively) to account for the impacts we forecast. Their new FSLR tgt is $98, down from $140.

Signup to learn more on solar stock trading.