Auriga Maintains a 'Buy' on First Solar (FSLR); 4Q11 Washout; Maintains 2012 Outlook
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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 of $53.00.
Auriga analyst says, "First Solar walks away from a loser's game driven by China/subsidy policies . First Solar has changed - its focus is now on controlling its operational destiny . It no longer fits into a quarterly performance tracking mechanism given structural shifts/market reorientation of its business model. First Solar is steadily walking away from below cost module competition from China even as it makes forays into non-subsidized markets that are yet to take hold. A new three-year business plan will be unveiled in May. In the interim, it is sharpening its toolset to aggressively reduce manufacturing costs ($0.67/Wp in 2012 to ~$0.52/Wp by 2015), improve module efficiency (12.7% in 2012 to ~15% by 2015), and build a self-sustaining global project pipeline (~2.7GW AC mostly in U.S. now, but is moving into India, Australia, SE Asia, Middle East & Latin America). Investor focus needs to shift towards First Solar's sustainable cost structure that will enable it to truly compete with grid electricity backed by a solid B/S (debt/capital 15.4%) and a rising cash flow (2012 OCF at $0.8B-$0.9B). Quarterly focus will increasingly offer less insight. 4Q11 was a Washout Amidst below cost c-Si pricing, Warranty Charges."
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 $36.40 yesterday.
Auriga analyst says, "First Solar walks away from a loser's game driven by China/subsidy policies . First Solar has changed - its focus is now on controlling its operational destiny . It no longer fits into a quarterly performance tracking mechanism given structural shifts/market reorientation of its business model. First Solar is steadily walking away from below cost module competition from China even as it makes forays into non-subsidized markets that are yet to take hold. A new three-year business plan will be unveiled in May. In the interim, it is sharpening its toolset to aggressively reduce manufacturing costs ($0.67/Wp in 2012 to ~$0.52/Wp by 2015), improve module efficiency (12.7% in 2012 to ~15% by 2015), and build a self-sustaining global project pipeline (~2.7GW AC mostly in U.S. now, but is moving into India, Australia, SE Asia, Middle East & Latin America). Investor focus needs to shift towards First Solar's sustainable cost structure that will enable it to truly compete with grid electricity backed by a solid B/S (debt/capital 15.4%) and a rising cash flow (2012 OCF at $0.8B-$0.9B). Quarterly focus will increasingly offer less insight. 4Q11 was a Washout Amidst below cost c-Si pricing, Warranty Charges."
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 $36.40 yesterday.
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