Axiom Sees Trouble Ahead For First Solar (FSLR)

Axiom Capital Research says that it sees trouble ahead for First Solar, Inc.

, as the AV Solar Ranch deal may no longer be a sure thing. It has a Sell rating on shares, to go with its $77 price target. In the research note, Axiom writes, "A credible source has informed us that defense powerhouse Northrop Grumman is formally objecting to FSLR's 230MW AV Solar Ranch One project in Antelope Valley in Los Angeles County, CA. While the information remains limited at present, our sources are telling us that Northrop Grumman is concerned that the reflection of the solar panels may interfere with tests being done in the area on the company's fighter jets, which are not detectable by radar (i.e., stealth bomber jets). What appeared likely now appears questionable – we believe the revelation of this information calls into question the viability of FSLR's project pipeline strategy..." Shares of FSLR are down $3.53 or 2.5% today, to trade at $139.10.