Deutsche Bank Starts First Solar (FSLR) at Hold, Sees Downside Risk to 2012 Consensus
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Price: $44.54 -3.09%
Rating Summary:
5 Buy, 22 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Rating Summary:
5 Buy, 22 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 2 | New: 2
Trade FSLR Now!
Deutsche Bank initiates coverage on shares of First Solar (NASDAQ: FSLR) with a Hold rating and $90 price target.
The firm notes that it sees earnings downside risk to the Street's estimates for 2012. One of its major concerns is the shirking European market available and the large impact it will have on the company due to its high exposure in the free field segment.
"The company is well positioned to be a competitor in the utility scale solar market, improve overall systems costs, and take advantage of new markets that open up post grid parity," states an analyst at Deutsche.
Shares are currently trading at a higher multiple of earnings than its peers and Deutsche believes that it is a result of discounting some positives. Deutsche's model has an upside to shares of FSLR of $100 per share and the downside as low as $70 to $80 per share. The firm forecasts that shares will continue to be range bound as uncertainty over the long-term growth outlook for the large scale utility segment remains.
For 2012, Deutsche estimates earnings of $10 to $11 and reports that each $0.01 move in average annual non-captive ASP change affects its EPS forecast by $0.15-$0.20.
The analyst comments, "Improved visibility and growth of US project pipeline, further progress on cost/efficiency roadmap and general improvement of large ground mount solar policy outlook could act as some drivers for valuation multiple expansion. However, we believe the probability of any of these events happening is low."
For more ratings news on First Solar click here and for the rating history of First Solar click here.
Shares of First Solar closed at $90.56 yesterday, with a 52 week range of $82.11-$175.45.
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The firm notes that it sees earnings downside risk to the Street's estimates for 2012. One of its major concerns is the shirking European market available and the large impact it will have on the company due to its high exposure in the free field segment.
"The company is well positioned to be a competitor in the utility scale solar market, improve overall systems costs, and take advantage of new markets that open up post grid parity," states an analyst at Deutsche.
Shares are currently trading at a higher multiple of earnings than its peers and Deutsche believes that it is a result of discounting some positives. Deutsche's model has an upside to shares of FSLR of $100 per share and the downside as low as $70 to $80 per share. The firm forecasts that shares will continue to be range bound as uncertainty over the long-term growth outlook for the large scale utility segment remains.
For 2012, Deutsche estimates earnings of $10 to $11 and reports that each $0.01 move in average annual non-captive ASP change affects its EPS forecast by $0.15-$0.20.
The analyst comments, "Improved visibility and growth of US project pipeline, further progress on cost/efficiency roadmap and general improvement of large ground mount solar policy outlook could act as some drivers for valuation multiple expansion. However, we believe the probability of any of these events happening is low."
For more ratings news on First Solar click here and for the rating history of First Solar click here.
Shares of First Solar closed at $90.56 yesterday, with a 52 week range of $82.11-$175.45.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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