AmTech Reiterates Buy and $450 Target on First Solar (FSLR)

July 29, 2008 12:00 PM EDT

American Technology Research reiterates its Buy rating and $450 price target on First Solar (Nasdaq: FSLR) ahead of its Q2 earnings, which are expected out tomorrow, July 30, after the market close.

The firm sees First Solar reporting another solid quarter due to strength in "several key end markets, as well as inputs related to the Malaysian capacity ramp." AmTech does not recommending trading the stock into earnings, but remains "very constructive on shares given the long-term solar trends we currently see playing out."

AmTech notes that updates on the progress of its Malaysian ramp will likely be the most important part of First Solar's earning report. The firm raised its Q2 adjusted EPS estimate on First Solar from $0.51 to $0.59 "based on SG&A growth assumptions more in-line with projected revenue growth." The Street consensus is $0.58. The firm calls First Solar "one of our top picks in solar given its low-cost advantage at the module level, as well as its relative lack of fundamental exposure to near-term areas of legislative concern such as Spain and the US."

With shares of First Solar trading around $270 today, AmTech's price target represents a potential gain of more than 65% from current levels.

First Solar, Inc. designs, manufactures, and sells solar electric power modules using a proprietary thin film semiconductor technology.

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