Ahead of the Bell: Analyst sees solar risk

NEW YORK—Solar cell demand will likely remain strong in the long term, but risk to the sector might grow in the first part of 2009 due to slowing demand in Germany, the U.S. and parts of Italy where expectations remain aggressive, a Citi Investment Research analyst said Thursday.

"We still see pricing down (about 15 percent) or more in 2009 -- a view backed by slightly more cautious pricing comments from SunPower Corp.," Timothy M. Arcuri said in a note to clients recapping a Citi conference on solar and other renewable powers.

Arcuri said he continues to "tread lightly" on the sector, but likes First Solar Inc. "as demand mix starts shifting more dramatically toward larger scale projects where the combination of scale and cost becomes paramount."

First Solar closed Wednesday at $247.14 and SunPower closed at $84.81.