Auriga Maintains a 'Buy' on First Solar (FSLR); Price Target Change Driven by Change in Valuation Stance
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Price: $225.56 +0.84%
Rating Summary:
37 Buy, 18 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
37 Buy, 18 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga maintains a 'Buy' on First Solar (NASDAQ: FSLR) price target raised from $41 to $53.
Auriga analyst says, "Given the ~38% gains in 2012, we suggest investors accumulate more aggressively on weakness. Our revenue and EPS estimates have not changed but our stance on First Solar's valuation has. On an earnings basis we are removing the 25% discount to the 2013 valuation that we had previously. Our concerns have not changed but they are widely known and largely embedded in investor expectations. These range from near term loss of visibility/control amidst irrational c-Si module pricing, on-going move to sustainable markets, management flux, and industry concerns in 2012 (Germany FiT cuts, U.S. import tariffs, China - demand). What is not fully embedded is the decelerating impact from c-Si module pricing as First Solar accelerates its cost structure gains in the upcoming quarters, and could provide upside to our as well as Street estimates."
"Our EPS estimates have a note of conservatism, and it is more likely they move up than down. Should First Solar fall short or Street estimates come down amidst dislocated market conditions, valuation impact will likely be minimal as solar PV valuations are for now anchored to tangible book value."
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 $46.50 yesterday.
Auriga analyst says, "Given the ~38% gains in 2012, we suggest investors accumulate more aggressively on weakness. Our revenue and EPS estimates have not changed but our stance on First Solar's valuation has. On an earnings basis we are removing the 25% discount to the 2013 valuation that we had previously. Our concerns have not changed but they are widely known and largely embedded in investor expectations. These range from near term loss of visibility/control amidst irrational c-Si module pricing, on-going move to sustainable markets, management flux, and industry concerns in 2012 (Germany FiT cuts, U.S. import tariffs, China - demand). What is not fully embedded is the decelerating impact from c-Si module pricing as First Solar accelerates its cost structure gains in the upcoming quarters, and could provide upside to our as well as Street estimates."
"Our EPS estimates have a note of conservatism, and it is more likely they move up than down. Should First Solar fall short or Street estimates come down amidst dislocated market conditions, valuation impact will likely be minimal as solar PV valuations are for now anchored to tangible book value."
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 $46.50 yesterday.
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