Hapoalim Cuts Price Target on First Solar (FSLR) to $80
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Price: $177.48 -1.45%
Rating Summary:
33 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
33 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Hapoalim Securities lowers its price target on First Solar (Nasdaq: FSLR) from $90 to $80, and maintains a Sell rating.
The firm sees weakening average selling prices and order delays or cancellations plaguing the thin-film industry, including First Solar, over the next 3-6 months. This prediction was made after analysts at Hapoalim attended the European Photovoltaic Industry Association's thin-film conference. The firm said it expected to leave the conference with an incrementally more positive sentiment on this area of solar, as the presentations were given by thin-film companies, however, Hapoalim said it walked away with even more conviction in its thesis that solars have more to fall given concerns related to:
Hapoalim reduced its estimate for First Solar's CY09 output from 305MW to 292MW and its average selling price estimate for CY09 from $2.09/watt to $2.03/watt and for CY10 from $1.67/watt to $1.58/watt. Consequently, the firm lowered its EPS estimate for First Solar's CY09 from $6.32 to $5.65, versus the consensus of $7.38. Also, for CY10, Hapoalim moved its EPS estimate from $7.77 to $6.41.
Shares of First Solar are down 7.1% today, most recently trading at $107.71. Based on the firm's price target, Hapoalim sees First Solar falling another 16% from current levels.
First Solar, Inc. designs, manufactures, and sells solar electric power modules using a proprietary thin film semiconductor technology.
The firm sees weakening average selling prices and order delays or cancellations plaguing the thin-film industry, including First Solar, over the next 3-6 months. This prediction was made after analysts at Hapoalim attended the European Photovoltaic Industry Association's thin-film conference. The firm said it expected to leave the conference with an incrementally more positive sentiment on this area of solar, as the presentations were given by thin-film companies, however, Hapoalim said it walked away with even more conviction in its thesis that solars have more to fall given concerns related to:
- the sustainability of contracted thin-film volumes in CY09 (due to contract
delays/cancelations), and
- lower thin-film module average selling prices in CY09, due primarily to increased equity financing for solar projects underpinned by tight debt markets (thereby lowering system level IRRs, thus pushing module
prices lower), but also higher balance of systems costs driving accelerated downward pricing pressure, and lower photovoltaic crystalline module prices".
Hapoalim reduced its estimate for First Solar's CY09 output from 305MW to 292MW and its average selling price estimate for CY09 from $2.09/watt to $2.03/watt and for CY10 from $1.67/watt to $1.58/watt. Consequently, the firm lowered its EPS estimate for First Solar's CY09 from $6.32 to $5.65, versus the consensus of $7.38. Also, for CY10, Hapoalim moved its EPS estimate from $7.77 to $6.41.
Shares of First Solar are down 7.1% today, most recently trading at $107.71. Based on the firm's price target, Hapoalim sees First Solar falling another 16% 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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