Good news and bad news for First Solar (FSLR) today.  While the company announced its intent to double capacity at the Frankfurt, Germany plant, the stock is getting hit on the Citi and Hapoalim price cuts.  The Citi price cut which I posted about earlier isn’t extraordinary, but the Hapoalim price cut to $65 is an eye opener. 

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Hapoalim Securities believes that First Solar may eventually be banned in Europe in a few years due to a ban on materials used in FSLR’s thin film solar cells.  At this time, the law is only proposed, but Hapoalim indicates First Solar hasn’t been transparent about this risk and that Wall St isn’t factoring it in.  iStockAnalyst has the detailed press release.

Shares of FSLR are trading around that very important $100 level today and down about 4%.  A close below the Feb low of 98.71 would be very bearish for shares of FSLR and likely signal a retest of the Nov 2008 low around 85.