According to StreetInsider.com, Collins Stewart is downgrading FSLR this morning to Hold from Buy.  It’s basically a valuation call after a big run in the stock.  They said…

“Due to the price increase seen in recent sessions, FSLR has reached a point where we find the risk/reward more balanced for investors. With yesterday’s rally, the shares are now within 16% of our $175 price target and trading at 22.5x our FY09 EPS forecast of $6.67. As a result, we are lowering our rating to Hold…With regard to China, we do not believe the program in China will meaningfully alter the demand for FSLR product or correct the polysilicon oversupply situation we forecast for CY09 and CY10…We would look for a price below $125 as a future re-entry point.”

I had been bearish on FSLR after it gapped down with heavy volume after reporting earnings several weeks ago.  It’s not often a stock moves higher and higher and not retest the gap down and that’s what FSLR has done.  Now that it’s back above the 50 day moving average, the game has changed.  If it can now hold that new level of support on a pull back that would be quite bullish.  Solar names are now very much on the radar with their recent moves.

FSLR is taking the downgrade well today, off just 2.5%.