Needham & Company Starts First Solar (FSLR) at Hold

Needham & Company analyst Vikram Bagri initiates coverage on First Solar (NASDAQ: FSLR) with a Hold rating.

The analyst commented, "FSLR is the only top-10 US-based solar module manufacturer with differentiated CdTe technology, which gives it competitive advantages over its peers. These advantages led to ~9GW increase in backlog this year, supporting doubling of manufacturing capacity over the next three years and the launch of next-gen modules being developed in-house. The company's series 6 module has lowered its costs meaningfully and the new series 7 module (500W) will further reduce its cost/watt, expand its gross margin by 1-3¢, and provide FSLR with a cost advantage over Asian manufacturers. However, in the interim, we expect the margins to narrow due to higher freight costs and a projected 11% degradation in ASP next year. We initiate coverage at a Hold, as we await more evidence of cost reductions, easing of freight issues, and reduced execution risk."

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 $95.43 yesterday.

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