Citi Maintains a 'Neutral' on First Solar (FSLR); Nice Qtr but Risk/Reward Still Seems Balanced
FSLR Hot Sheet
Rating Summary:7 Buy, 21 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 7 | New: 15
Citi maintains a 'Neutral' on First Solar, Inc. (Nasdaq: FSLR), price target $135.
Citi analyst says, "Strong Q/guide and most importantly announced some new capacity adds (as we suspected) given new focus on share gain and demand for its product that remains very high. With the stock near our $135 target, however, and minimal changes to our estimates (consensus most likely to come up), it is hard to argue risk/reward overly compelling unless one builds a case for EPS to break out of the ~$7.00+/- $0.75 range. More of FSLR’s revs will go to pre-negotiated PPA deals in 2011, but we are still hard pressed to see much if any EPS growth in 2011 as pricing seems apt to be a bigger headwind given the alleviation of wafering bottlenecks for competing silicon product, ongoing poly oversupply, and potential demand perturbations due to pull-ins this year. Rather, we see 2012 as the big year (~$9.50-10 EPS) but it seems early to pay for it...Prefer over Sell rated SunPower (Nasdaq: SPWRA)."
To see all the upgrades/downgrades on shares of FSLR, visit our Analyst Ratings page.
First Solar, Inc. (First Solar) is engaged in the manufacture and sale of solar modules with an advanced thin film semiconductor technology, and it designs, constructs and sells photovoltaic (PV) solar power systems.
Citi analyst says, "Strong Q/guide and most importantly announced some new capacity adds (as we suspected) given new focus on share gain and demand for its product that remains very high. With the stock near our $135 target, however, and minimal changes to our estimates (consensus most likely to come up), it is hard to argue risk/reward overly compelling unless one builds a case for EPS to break out of the ~$7.00+/- $0.75 range. More of FSLR’s revs will go to pre-negotiated PPA deals in 2011, but we are still hard pressed to see much if any EPS growth in 2011 as pricing seems apt to be a bigger headwind given the alleviation of wafering bottlenecks for competing silicon product, ongoing poly oversupply, and potential demand perturbations due to pull-ins this year. Rather, we see 2012 as the big year (~$9.50-10 EPS) but it seems early to pay for it...Prefer over Sell rated SunPower (Nasdaq: SPWRA)."
To see all the upgrades/downgrades on shares of FSLR, visit our Analyst Ratings page.
First Solar, Inc. (First Solar) is engaged in the manufacture and sale of solar modules with an advanced thin film semiconductor technology, and it designs, constructs and sells photovoltaic (PV) solar power systems.
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