First Solar shares may be overvalued - Barron's

NEW YORK, July 15 (Reuters) - Shares in First Solar Inc. (FSLR.O), which makes thin-film solar panels, may be overvalued, according to Barron's.

First Solar saw its shares rocket 18 percent last Monday to an all-time high after it disclosed new European and North American contracts worth $1.28 billion over five years.

Barron's said though First Solar's technology is more cost-effective than competitors, it still falls short of the huge potential for Solar 2.0, a thin-solar energy technology based on chemicals and vapor deposition.

First Solar is also highly dependent on European government subsidies, especially in Germany, which said two weeks ago it wants to cut subsidies further for solar, Barron's reported.

First Solar's shares closed up $1.41 on Friday at $115.97.

Barron's also identified five 'green' stocks to watch that it believes may either be acquisition targets or become household names in their own right.

The top five were SunPower Corp. SPWR.O, a majority-owned spin-off of Cypress Semiconductor Corp. CY.N; Environmental Power Corp. EPG.A; air pollution control specialist Fuel Tech Inc. (FTEK.O) ; fresh water company Pico Holdings Inc. (PICO.O); and wind energy specialist Composite Technology Corp. (CPTC.OB).