Axiom Capital Upgrades First Solar (FSLR) to Buy

Axiom Capital upgraded First Solar (NASDAQ: FSLR) from Hold to Buy with a price target of $51.00.

Analyst Gordon Johnson commented, "Our checks suggest FSLR has delayed its transition to Series 6 technology, instead running its Series 4 production lines longer to accommodate Section 201-based demand (our contacts indicate FSLR is sold out through 3Q18). We now model ‘17/’18 shipments of 2.7GW/3.1GW vs. 2.2GW/2.9GW prior (we blv IPPs are stockpiling modules for 3Q17-3Q18 projects to circumvent potential liquidated damage expense); we now project FSLR’s ’17 & ’18 ASP at ¢49/W & ¢47/W vs. ¢40/W & ¢34/W prior. Hence, our ’17 rev/EPS ests. edge higher to $4.2bn/$1.21 vs. $2.8bn/-$0.31 prior (Cons $2.9bn/$0.56); our ’18 rev/EPS ests. are now $3.4bn/$0.80 vs. $2.8bn/-$0.55 prior (Cons $2.2bn/$0.69). With 7 BUYS & 13 HOLDS, we see sell-side sentiment as skewed too negatively (a number of upgrades could be on tap). Annualizing our 3Q17 EPS est. of ¢80 & applying a mid-cycle 16x P/E multiple, we derive a fwrd. 12-mo. PT of $51."

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 $44.02 yesterday.

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