First Solar (FSLR) PT Raised to $69 at Baird Post Q2; Lists 12 Reasons to Own the Stock

Baird analyst Ben Kallo reiterated an Outperform rating and raised his price target on First Solar (NASDAQ: FSLR) to $69.00 (from $66.00) following Q2 beat and strong guidance.

Kallo commented, "FSLR beat estimates across the board, had a strong book to bill ratio, and continues to make substantial efficiency gains. Additionally, FSLR is sold out of modules through most of 1H:16, and the company continues to expand its global pipeline and is well capitalized for strategic global growth. Inside the report we outline 12 reasons to own the stock. We would be aggressive buyers at current levels."

Kallo's 12 reasons to own the stock:

1. Cost reductions continue and FSLR is targeting 2017 total system cost <$1 per watt which should keep FSLR a cost leader.

2. Pipeline concern is valid, although potential booking opportunities continue to grow, which should facilitate growth

3. Launch of CAFD provides captive project buyer and stable cash flows from best solar technologies

4. New markets continue to open and FSLR is gaining traction in international markets which should allow for growth regardless of the ITC step-down (if it steps down). F

5. Balance sheet remains strong to facilitate production expansions, project acquisitions, and international growth. A

6. Recent pullback provides a significant buying opportunity

7. Stranded projects may be acquired boosting pipeline.

8. Thin film technology differentiation with lower degradation rates and better heat coefficients – Tetrasun also provides option value, in our opinion

9. Capacity expansions and line restarts should allow for significant production growth

10. 2015 guidance was significantly higher than expected driven by strong revenue and expected margin

11. Increasing efficiency rates continue to make FSLR more competitive, while increasing FSLR's production footprint with minimal CAPEX.

12. Technology roadmap should allow FSLR to become a competitive threat in the rooftop and C&I markets in the intermediate term

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 $44.50 yesterday.

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