A Citi Investment Research analyst began covering shares of U.S.-based solar power companies Friday, saying First Solar Inc. is one of the few companies that will weather sharp decline in prices.

Timothy Arcuri expects a large oversupply of solar power cells in 2009 and 2010, which will lead to lower prices and a shakeout in the sector. Companies with cost advantages will trade at much higher levels than their rivals, he said.

Arcuri rated First Solar shares at "Buy," predicting that by 2012, the company will be able to produce energy that costs the same as grid-produced electricity. First Solar's rivals will need another two years to reach that important milestone, he said.