Collins Stewart Says First Solar's (FSLR) Permit Issue Resolved, Sees DoE Funds Coming Soon to AVSR
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Collins Stewart is reaffirming its Neutral rating and $40 price target on shares of First Solar (NASDAQ: FSLR) price target of $40.00 following multiple conversations in recent days with various permitting issuing groups within the LA County government.
The firm highlights many county officials did not know there still were outstanding permitting issues in regards to AVSR. Many suspected since the project was still under construction it was in compliance with permits.
An analyst at Collins Stewart comments, "We believe that FSLR was issued a permit for some specific activity (possibly a grading) based on plans submitted to the county. It then sought to revise those plans, resulting in a review period for the new plans. During the review period, the permit was technically not effective, which we believe triggered the DoE to have to withhold funding. DoE rules require loan-backed projects to be fully permitted before the release of funds. EXC had indicated that the permitting issue was minor and a ministerial issue (one that could be resolved by approval from a county official)."
The firm believes DoE funds will begin to flow in within the next few weeks as the county official issuing the Conditional Use Permit has confirmed that AVSR is fully permitted by LA County.
With everything finally being resolved, Collin Stewart was reaffirmed its Q1 and FY12 EPS estimates of $0.75 and $1.38.
For an analyst ratings summary and ratings history on First Solar click here. For more ratings news on First Solar click here.
Shares of First Solar closed at $39.71 yesterday, with a 52 week range of $29.87-$175.45.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
The firm highlights many county officials did not know there still were outstanding permitting issues in regards to AVSR. Many suspected since the project was still under construction it was in compliance with permits.
An analyst at Collins Stewart comments, "We believe that FSLR was issued a permit for some specific activity (possibly a grading) based on plans submitted to the county. It then sought to revise those plans, resulting in a review period for the new plans. During the review period, the permit was technically not effective, which we believe triggered the DoE to have to withhold funding. DoE rules require loan-backed projects to be fully permitted before the release of funds. EXC had indicated that the permitting issue was minor and a ministerial issue (one that could be resolved by approval from a county official)."
The firm believes DoE funds will begin to flow in within the next few weeks as the county official issuing the Conditional Use Permit has confirmed that AVSR is fully permitted by LA County.
With everything finally being resolved, Collin Stewart was reaffirmed its Q1 and FY12 EPS estimates of $0.75 and $1.38.
For an analyst ratings summary and ratings history on First Solar click here. For more ratings news on First Solar click here.
Shares of First Solar closed at $39.71 yesterday, with a 52 week range of $29.87-$175.45.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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