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UBS Maintains a 'Neutral' on First Solar (FSLR); Some N-T Uncertainty at AV Project

February 10, 2012 11:51 AM EST
FSLR Hot Sheet
Rating Summary:
    7 Buy, 21 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 7 | New: 26
UBS maintains a 'Neutral' on First Solar (NASDAQ: FSLR) price target raised from $36 to $49.50.

UBS analyst says, "First Solar reported that its Antelope Valley Solar Ranch (AVSR) project has not received its loan guarantee from the Dept of Energy for $646M because its does not have a construction permit from Los Angeles county. Our checks found that the delay in construction permit is due to higher than expected water usage at the project site and more ground leveling needed. First Solar reported it could pay $75M back to Exelon if it is unable to get the DOE funding and cannot extend the deadline with Exelon (NYSE: EXC). First Solar would then likely try to find an alternate buyer."

"We believe First Solar’s 3 other large U.S. utility projects (Agua Caliente, Sunlight and Topaz) are still on track and that it could see upside from new markets such as Australia and Middle East. We note First Solar had net cash of $186M at the end of 3Q11 and is able to cover a $75M payment with its own balance sheet if needed."

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 $49.03 yesterday, with a 52 week range of $29.87-$175.45.


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