First Solar (FSLR) Run-Up Caused by a Short Squeeze, Fundamentals Still Weak
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Price: $54.89 +9.82%
Rating Summary:
4 Buy, 23 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
4 Buy, 23 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade FSLR Now!
Shares of First Solar (NASDAQ: FSLR) surged 21 percent yesterday on a couple positive data points, but according to analyst at JPMorgan the rise was nothing more than a short squeeze and fundamentals are still lousy. The firm used the opportunity to cut their price target on the company.
Two new positive data points are the culprit for the squeeze, according to the firm. First, on Monday, First Solar announced it was adding 159MW of new projects to its development pipeline. Then yesterday, Bloomberg ran a story indicating First Solar will delay the closure of its German module plant due to better than expected near-term demand in Europe.
"Given the large short interest in FSLR, we think these two data points coupled with a rebounding market drove a significant short squeeze in the stock yesterday," analyst Christopher Blansett said. "We do not believe there was much, if any, structural long buying in yesterday's stock move."
The firm reiterated its Underweight rating and cut their price target to $14.00 (from $20.00).
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 are down 7 percent early Wednesday to $13.88.
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Two new positive data points are the culprit for the squeeze, according to the firm. First, on Monday, First Solar announced it was adding 159MW of new projects to its development pipeline. Then yesterday, Bloomberg ran a story indicating First Solar will delay the closure of its German module plant due to better than expected near-term demand in Europe.
"Given the large short interest in FSLR, we think these two data points coupled with a rebounding market drove a significant short squeeze in the stock yesterday," analyst Christopher Blansett said. "We do not believe there was much, if any, structural long buying in yesterday's stock move."
The firm reiterated its Underweight rating and cut their price target to $14.00 (from $20.00).
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 are down 7 percent early Wednesday to $13.88.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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