First Solar Analyst Outlook: German Solar Subsidy Cuts Are Coming, But Could Be Delayed
Shares of struggling First Solar (NASDAQ: FSLR) traded higher on Thursday, but reversed their gains on Friday when the stock fell 3.12% to $26.11. The stock has been decimated over the last year as countries such as Germany slash solar subsidies.
The activity in FSLR on Thursday may have been related to efforts by the Green Party in the German parliament to prevent deep cuts to solar subsidies. According to an analyst who spoke with Benzinga, however, this is not likely. While the Green Party has a voice in German Parliament, it is a minority party and it is very unlikely to get its way.
Instead, German Chancellor Angela Merkel's party, which is part of the majority coalition, will likely succeed in pushing through the cuts in an effort to reduce spending. The decision, however, could be delayed due to the political wrangling of opponents.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.