UBS Boosts Price Target on First Solar (FSLR), Remains on the Sidlines
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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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UBS was out with a rare neutral-to-bullish leaning report on First Solar (NASDAQ: FSLR) Tuesday. The firm said the stock now reflects the implied value of its solar project pipeline and they raised their price target of $21.00 (from $17.00). The firm's Neutral rating was maintained.
"Our analysis shows that First Solar's guidance of a 2.8GW DC project pipeline with $3.4B in net cash receipts (gross profit) from 2012-14 implies a stock price of $21/share or net cash increase of $1.85B by the end of 2014 assuming a system price of $2.90/W DC, opex at 15% of sales, a 15% tax rate and 88M shares," analyst Mahavir Sanghavi said, "We estimate value of First Solar's unsold 1.1 GW DC pipeline at $.4.50/share."
On emerging markets, the firm notes growth will take longer. They expect competitors to lower module costs to $0.60/W vs. First Solar’s guidance of $0.64/W by end of 2012. "We believe that this makes it challenging for First Solar to profitably seed new markets and expect First Solar to build a project business in emerging markets, which likely takes longer than just component sales."
The firm raised 2013 EPS estimate to $4.75 from $4.60 on higher profitability and project pull-ins, but lowered 2014 EPS from $4.25 to $4.00.
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 closed at $21.00 yesterday.
"Our analysis shows that First Solar's guidance of a 2.8GW DC project pipeline with $3.4B in net cash receipts (gross profit) from 2012-14 implies a stock price of $21/share or net cash increase of $1.85B by the end of 2014 assuming a system price of $2.90/W DC, opex at 15% of sales, a 15% tax rate and 88M shares," analyst Mahavir Sanghavi said, "We estimate value of First Solar's unsold 1.1 GW DC pipeline at $.4.50/share."
On emerging markets, the firm notes growth will take longer. They expect competitors to lower module costs to $0.60/W vs. First Solar’s guidance of $0.64/W by end of 2012. "We believe that this makes it challenging for First Solar to profitably seed new markets and expect First Solar to build a project business in emerging markets, which likely takes longer than just component sales."
The firm raised 2013 EPS estimate to $4.75 from $4.60 on higher profitability and project pull-ins, but lowered 2014 EPS from $4.25 to $4.00.
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 closed at $21.00 yesterday.
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