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FBR Capital Cuts Price Target & Estimates on First Solar (FSLR)

November 2, 2009 12:01 PM EST
FSLR Hot Sheet
Rating Summary:
    7 Buy, 21 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 25 | Down: 12 | New: 36
FBR Capital cuts price target on First Solar (Nasdaq: FSLR) from $110 to $90, lowers estimates as well.

FBR analyst says, "Given our belief that FSLR's 3Q report/conference call underscored all of the major concerns we have been raising for more than a year, we spent a few days reexamining our assumptions and model. We have once again reached the conclusion that the stock, following the sharp sell-off post 3Q report, may have not seen a bottom yet simply because we do not believe the true earning power of the company has been fully dialed into the stock. Yes, despite our repetitive warnings, investors were still surprised that the timing of the sale of the first phase of the Sarnia project caused the 3Q09 miss."

"Following 3Q report, we are changing our CY09 EPS estimate from $7.34 to $7.35, though the entire upside is attributed to lower taxes. We are also fine-tuning our CY10 estimate, which has been reduced from $5.00 to $4.75, versus the current consensus estimate of $7.29. Our new CY10 estimates are based on a module/system (revenue) mix of 80/20. For system biz, we are assuming 45 MW of the Ontario pipeline (PPAs), Tri State 30 MW (PPA), Sampra 48 MW (EPC), and LADWP 20 MW (EPC)...We are also using this opportunity to introduce our CY11 EPS estimate of $4.43, versus consensus of $9.04. Our CY11 estimates are based on module/system (revenue) mix of 65/35."

To see more analyst ratings on FSLR Click Here.

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