Axiom Previews First Solar Ahead of Q2 Earnings

First Solar is scheduled to release its second quarter earnings after the market close on Tuesday. In the run-up to this, Axiom has published a note in which it maintained a Sell rating on the stock and lowered the price target from $29 to $28. Axiom began the note by making clear the concerns the firm has about the sale of First Solar's 136 MW Solar Gen 2 and 24 MW Maryland Solar projects by the end of September 2014. Axiom stated, "As First Solar works is way through the bulk of its profitable projects, the lion's share of which the company is aggressively pulling in to hit its lofty forward guidance , margins will fall significantly, rendering the multiple the market is currently ascribing to First Solar's "one-time-in-nature" earnings power overstated." The firm added that when the market finally wises up to this fact, First Solar's shares are in for a "severe correction lower".