First Solar's Star Dimmer Than Ever

SAN FRANCISCO -- It's been a rough six months for shareholders of First Solar(FSLR Quote).

Wednesday was no better.

Shares of the Tempe, Ariz., solar power-cell maker were off 5.9% to $104.05 in recent trading, dragged down with help from a note by Friedman Billings, which lowered its target on the stock to $120 from $170.

Friedman noted that the company was still the "best in the business" in its ability to maximize its assets, but the company faces headwinds in the U.S., where price competition could heighten from so-called crystalline-cell makers (although First Solar has disputed that threat).

First Solar's dive took down shares of other names in the sector: Evergreen Solar(ESLR Quote) slid nearly 15%, Solarfun Power(SOLF Quote) was down 13.6%, and JA Solar(JASO Quote) was down 10.5%.

The prospect of a move to $120 from its current level is of little comfort to First Solar shareholders, who six months ago saw their shares worth $300 while the company was doubling its year-over-year revenue every quarter.

For now, First Solar is still growing the top line at those levels, but its 2009 revenue is expected to come in at $2.05 billion, growth of only 67.5%.

That expected decrease in growth is no surprise given that the reasons for it have already contributed to the stock's fall from grace: the global credit meltdown and the dollar's rally against the euro, which has made projects more expensive for European customers. The company has, however, hedged part of the euro depreciation.