Citigroup (NYSE:C) Says First Solar's (NASDAQ:FSLR) 230MW AV Solar Ranch One Approval Has Risks

After digesting the announcement by First Solar (NASDAQ:FSLR) that they were granted approval for their 230MW AV Solar Ranch One (AVSRO) project by the LA County Board of Supervisors, Citigroup (NYSE:C) said it won't be material for estimates in 2011, and retains some risks.

Citigroup said, “As the Street becomes suddenly concerned about long-evident supply issues, we are starting to take the opposite view especially with respect to FSLR. In short, we think 2011 EPS guidance will bracket the low to mid $8.00 range, but our confidence in this number is very high especially relative to Chinese solar names where pricing is a much bigger question mark.

"Thus, we think FSLR should start to outperform its Chinese peers and the stock should start to become a bastion of safety in 2011 as estimate risk among peers is increasingly evident.”

The approval was in connection to a complaint from Northrop Grumman (NYSE:NOC) that it may interfere with their radar testing facility in the area.

First Solar was trading at $126.00, rising by $1.80, or 1.45 percent as of 12:17 PM EST.