Barclays analyst Jon Windham initiated coverage of the U.S. Alternative Energy industry with a Neutral rating citing the pullback in energy prices and risk to demand from emerging markets given the step-down of the U.S. investment tax credit at the end of 2016. Windham, however, expects alternative energy demand to "remain robust" over the longer term. He started shares of First Solar (FSLR) with an Overweight rating and $71 price target. The stock closed yesterday at $47.84. The solar company's "strong" $15 per share of net cash will internally fund its international growth, Windham tells investors in a research note. He named First Solar his Top Pick in the space. The analyst rounded out his coverage in the space with Equal Weight ratings on SunPower (SPWR) and 8point3 Energy (CAFD).

SunPower told employees today it was eliminating 1,000 positions, more than 25% of its workforce. In a letter to staff, Tom Werner stated: "I'm writing to share difficult news with you as we implement changes across our organization in the days and weeks to come. To position SunPower for the future, we need to achieve financial viability, which includes simplifying our business structure, transitioning away from areas where we have been unable to sustain profitable operations, and improving financial controls. As such, we are moving to a low fixed-cost model that we believe we will be able to better flex when the market is up or down. Specifically, we are winding down our SunPower Residential Installation locations and closing SunPower Direct sales. We are also reducing our workforce to better align our business with our new focus. With this shift, we will reduce our workforce by approximately 1,000 people in the coming days and weeks. While we worked hard to avoid this outcome, the market has been slower to recover than we initially expected. Additionally, we have dedicated resources to improving our financial controls, and will continue to do so. We believe this shift in our strategy is necessary to safeguard the company's future." Reference Link

Wells Fargo notes that a group of seven domestic solar product makers, including First Solar (FSLR), filed a petition to levy anti-dumping and countervailing duties on solar imports from Cambodia, Malaysia, Thailand and Vietnam, looking for duties ranging from 70.4% to 271.5%. The firm, which included the "important reminder" that "this is just a petition," says the uncertainty created by the petition is "incrementally positive" for First Solar and negative for Canadian Solar (CSIQ), Array Technologies (ARRY) and Nextracker (NXT).