Solar Notes: Dow Jones Investment, First Solar Upgrade

Solar energy in the U.S. is getting a shot in the arm by none other than Dow Jones, the owner of Barron’s and this Web site. The newspaper publisher today announced it’s “about to make a major investment in solar energy.”

In a statement to employees, Dow Jones CEO Les Hinton said the company plans to install solar panels at its South Brunswick, N.J. campus, in an area that will total nearly 230,000 square feet. The installation will generate 4.1 megawatts of electricity and be “the largest solar power installation at a single commercial site in the U.S.,” Hinton said.

The project is expected to take a year to complete. In total, over the course of the year, the panels will provide 15% of the South Brunswick campus’ electric needs.

Meanwhile, earlier this morning Battle Road Research upgraded shares of First Solar (FSLR) to Buy from Hold and set a $150 price target.

In its note, Battle Road says negative catalysts are in the past and “expectations are too low for 2010.” (First Solar stock is down 9% over the last 12 months, compared with a 49% gain for the Nasdaq.) The stock has been under pressure over concerns about subsidy cuts in Germany, First Solar’s primary market.

More highlights from Battle Road’s note:

• Thanks to a process that avoids polysilicon, First Solar continues to have gross margins near 50%. “The company continued to improve its cost per watt and efficiency in the fourth quarter, cementing its cost advantage,” Battle Road says.
• Uncertainty related to the European subsidies known as feed-in-tariffs “have been fully absorbed by the stocks.”
• Despite concerns, volumes for the first three and half months of 2010 have exceeded expectations. Battle Road notes that industry estimates call for worldwide installations totalling eight to 13 gigawatts in 2010, up from 6.4 gigawatts in 2009.

Shares of First Solar are up 3.8%, or $4.75, today to $128.84.