According to StreetInsider.com, Energy Conversion Devices (ENER) is being hit with a Sell rating by Citi this morning:

“We acknowledge ENER’s small scale and niche end market (BIPV) in regions like France + Italy may provide some near-term pricing cover, but those markets are still not big enough to provide much headroom. Meanwhile, collapsing prices for competing x-Si modules should overtake its pricing umbrella by CQ1:09. These floodwaters should force it to get more aggressive on pricing or curtail capacity expansion. Further, unlike x-Si which may count on cheaper silicon as a margin offset or FSLR who can use scale + profitability to take share, ENER appears to have few near-term offsets…While still likely a distant reality, we could be wrong if homebuilders rapidly design-in BIPV. Also, an Obama victory could spark a rally in solars.”

The timing for Citi is impeccable.  Shares are already off about 60% in two months and the stock is shrugging the sell rating aside and moving 7% higher this morning.