Citigroup (NYSE:C), Deutsche (NYSE:DB), Auriga, Macquarie Give First Solar

First Solar (Nasdaq:FSLR) has garnered a lot of attention since their most recent quarterly report, drawing mixed rating results from Citigroup (NYSE:C), Deutsche Bank (NYSE:DB), Auriga and Macquarie.

The good news from their recent report was earnings per share exceeded analysts' expectations, with normalized EPS coming in at $2.21, although excluding one-time items, the company earned $1.87 a share, missing the analyst estimate of $1.94 per share, which is what most were looking at.

The bad news is cost rose during the quarter, generating questions as to if the industry cost leader is experiencing sustainable cost challenges, or they can rein it back in.

First Solar had their average cost per watt increase to 77 cents, a boost of 1 cent. That was based upon focusing on improving production lines, which ended up slowing things down.

Chief Executive Officer Rob Gillette said in the conference call of the company that they're working on reducing costs as production capacity is poised to double in 2012.

Again, cost performance going forward, and thus margins and earnings, will be determined on whether this was specific to the quarter, or a long-term
reality. No one knows at this time which it is. It generated concerns because it's the first time since the second quarter of 2008 the cost-per-watt increased sequentially.

Auriga said, "Core cost per watt increased slightly due to manufacturing
changes made in the quarter. While this is likely a one-time event, it does mark the first time since 2Q08 that cost-per-watt increased sequentially. With increased q/q utilization and module efficiency, concern might arise that cost reduction efforts are at least stalling."

Auriga maintained their "Buy" rating and $175 price target on First Solar.

Citigroup increased their price target on First Solar from $145 to $150,
although they are much lower than the other price targets mentioned here.

Macquarie downgraded First Solar from "Buy" to "Neutral," and Deutsche Bank downgraded them from "Buy" to "Hold." Macquarie has a price target of $175 on the solar company, raising it from $170.

Macquarie Slashes Massey (NYSE:MEE) After Lower Guidance

After Massey Energy Company (NYSE:MEE) lowered its guidance, Macquarie downgraded the stock from "Outperform" to "Neutral."

Not only has the company lowered its outlook for shipments, but also expects a loss in the third quarter.

Massey's Chairman and CEO Don Blankenship said, "Our operations have continued to struggle since April. As we have noted earlier,
increasingly stringent enforcement actions by MSHA across our
operations and throughout the Central Appalachian region have resulted
in lost shifts and loss of productivity. In addition, our Revolution
longwall mine was idled in June for a planned longwall move but has
remained down pending approval of its ventilation plan. As a result of
these and other factors, we now expect our third quarter shipments to
approximate 10 million tons and we expect to report an operating loss
for the quarter."

Concerning guidance for 2011, Blankenship added, "We remain confident that we will achieve operational improvements going forward. As the Upper Big Branch investigation winds down, we have refocused management time and attention on our ongoing operations and we are initiating actions to improve productivity and re-establish operating consistency in all our mines. In addition, our early negotiations with metallurgical coal customers give us reason to expect pricing in 2011 will be favorable to what we have realized in 2010. Our guidance for 2011 remains unchanged."

Results for the third quarter will be released on after the close of the market on October 26, 2010.

Alliant Energy (NYSE:LNT), RRI Energy (NYSE:RRI) Upgraded by Macquarie, Bank of America (NYSE:BAC)

Continuing to receive a lot of attention, the energy sector has been receiving a number of upgrades and downgrades recently, and on the upgrade side, Alliant Energy (NYSE:LNT) and RRI Energy (NYSE:RRI) got a boost from Macquarie and Bank of America (NYSE:BAC).

Macquarie upgraded Alliant Energy (NYSE:LNT) from "Neutral" to "Outperform," while Bank of America upgraded RRI from "Neutral" to "Buy."

Alliant Energy Corporation, which engages in electric and gas utility businesses in the United States, was at $35.77, down $0.07, or 0.20 percent as of 3:35 PM EDT.

RRI Energy, Inc., which provides energy, capacity, ancillary, among other energy services to wholesale customers in power generation markets in the United States, dropped to $3.66, losing $0.08, or 2.01% percent, at 3:36 PM EDT.