UPDATE 1-Solar stocks slide on First Solar rebate plan

* First Solar shares slide 10 pct, drag down sector

* Credit Suisse cuts First Solar rating to "neutral"

* Other analysts cut First Solar price targets (Adds details, analyst comments)

LOS ANGELES, July 31 (Reuters) - Shares of First Solar Inc (FSLR.O) slid 10 percent, dragging down the rest of the solar sector, a day after the industry bellwether posted a quarterly profit that pummeled Wall Street estimates but said it would resort to rebates to defend its market position in Germany.

The stock fell to $156.03 in early-afternoon trading on the Nasdaq. Shares of rival Sunpower Corp SPWRA.O traded down about 4 percent at $32.00, while Evergreen Solar Inc ESLR.O fell about 13 percent to $2.07.

Credit Suisse analyst Satya Kumar dowgraded First Solar to "neutral" from "outperform," saying the current quarter would "be the last good quarter for a while...we expect the stock to look ahead of this peaking earnings momentum and pull back to lower levels."

Other analysts lowered their price targets and revenue estimates for Tempe, Arizona-based First Solar.

First Solar has weathered the global recession better than many of its peers because its cadmium telluride panels are cheaper to produce than the silicon-based panels that dominate the market.

On Thursday, however, the company disappointed investors when it said it would offer a rebate program in Germany to preserve its market position. The market was also disappointed that the company maintained its revenue and gross margin outlook for 2009, rather than raising it. [ID:nN30351001].

Smaller U.S. solar company Evergreen Solar Inc ESLR.O also disappointed investors late on Thursday when it reported a wider-than-expected quarterly loss. (Reporting by Laura Isensee, editing by Nichola Groom)