Auriga maintains a 'Buy' on First Solar (FSLR); Not Dressing Up For A Sale

Auriga maintains a 'Buy' on First Solar (NASDAQ: FSLR) price target of $53.00.

Analyst, Hari Chandra, said, "First Solar's restructuring/transition to sustainable markets is realistic as it repositions away from the fickle subsidy policies in Europe and supply side madness emanating from China. The strategic reorientation comes with a cushion of ~15% debt/capital and a 2.8GWp of project pipeline with $3.4B net cash receipts = revenue visibility of > $10B between 2012 to 2014. Meanwhile, we expect the company to use the time/business cushion to sharpen its competitive knife via a lower cost structure/rising backlog of global project pipeline. In our view, First Solar is neither desperate nor is dressed for sale as its business fundamentals and financials are solid despite solar PV market dislocation. It has already paid a high price for the strategic shift via a 30% workforce trim and a battered stock price. We see it reaping the benefit as investors see beyond the transition fog."

Auriga cuts FY12/13 revenue estimates, raises EPS.

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 $22.96 yesterday.

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