UPDATE 2-SolarWorld keeps 2009 outlook, Q3 weak

* Confirms 2009 sales outlook of 1 bln eur

* Q3 EBIT 34.7 mln eur vs 38 mln eur estimate

* Company had to fend off 25 pct price slump

* Shares up 1.5 percent vs FTSE clean tech index up 0.8 pct (recasts, adds CEO comments, background, analysts)

By Christoph Steitz

FRANKFURT, Nov 4 (Reuters) - SolarWorld (SWVG.DE) on Wednesday reaffirmed a full-year sales target of 1 billion euros ($1.47 billion) despite cutting prices by a quarter and missing third-quarter operating earnings forecasts.

Germany's No.3 solar company reported third-quarter sales at 232.5 million euros and earnings before interest and tax (EBIT) amounted at 34.7 million. Analysts in a Reuters poll on average expected sales of 270 million and core earnings of 38 million.

Overcapacity of solar cells and modules has led to massive price declines, bringing growth in the once-booming sector to a near standstill at a time when companies have huge difficulties finding funding for cash-intensive solar projects.

"We had to stave off a price fall of 25 percent," SolarWorld Chief Executive Frank Asbeck, sometimes called the "Sonnenkoenig" (Sun King), told Reuters, adding that some of it was offset by cost cuts.