Credit Suisse Downgrades First Solar (FSLR) to Underperform

Credit Suisse downgraded First Solar (NASDAQ: FSLR) from Neutral to Underperform with a price target of $29.00 (from $30.00).

Analyst Andrew Hughes comments "A pathway to $3 in earnings by 2019 has to assume unrealistic module and/or systems margins, or a module/systems mix that is counter to the direction of the business. We believe our $1.30 2019 EPS estimate is a more realistic reflection of run-rate earnings, although a pathway to $1.50 is feasible once fully ramped for a year at 3.5GW (i.e. 2020). Our $28 TP is based on 17x 2019 EPS plus net cash, discounted back at 10% and adding in consideration of FSLR's 8.3 Stake. Our 2017-18 ests come down slightly. Risks to our view are faster ramp/better cost trajectory for S6, and faster pickup in US RfP activity."

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 $36.62 yesterday.

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