Hapoalim Securities Has Thoughts On Solar Industry (FSLR)

Hapolaim Securities has some thoughts on the solar sector, of which First Solar FSLR is a component. In the research note, Hapolaim Securities writes, "In conclusion, based on the latest Germany data and trends 4Q10-to-date, we believe Germany is on track to do 7.6 GW in 2010, though we expect demand to moderate in 2011 to 5.5 GW. With the recent developments on the regulatory front in the Czech Republic, we expect demand in that market to drop almost 1.1 GW to only 57 MW, as the market becomes limited to only small residential rooftop installations. In turn, the solar industry will enter into 2011 already in the hole by roughly 3 GW in demand. Though we expect growth to pick up in Italy, the US, Japan, and China, with our forecast suggesting these four countries in aggregate to only offset roughly 2.5 GW of that decline, a repeat of the high growth experienced in 2009 and 2010 is unlikely. In conclusion, as demand and pricing catch up to the new incentive frameworks worldwide, we believe it is most likely that demand remains flat in 2011 at around 15-15.2 GW." Shares of FSLR are down $3.20 to $134.48, a loss of 2.3%.