Piper Jaffray Reiterates Buy and $350 Target on First Solar (FSLR)

Piper Jaffray reiterates its Buy rating and $350 price target on First Solar (Nasdaq: FSLR).

Based on supply chain checks at the three-day Intersolar Trade Fair, which started today, the firm believes a U.S. plant announcement is on the horizon and estimates that a 350MW+ (megawatt) plant would be needed. Moreover, Piper believes that over the next several years, First Solar "is the only company that can bid these utility projects without the ITC (Investment Tax Credit)."

While the market has now factored in "the bear case of solar demand in Spain", Piper believes the market has not yet priced in the "enormous US market driven demand from utilities regardless of ITC expansion." The firm feels that "state incentives are all that is required for First Solar."

With shares of First Solar trading up more than 6% to around $270 today, Piper's $350 price target represents upside of about 30% 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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