Maxim Downgrades First Solar (FSLR) to Sell, Sets $9 Price Target
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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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Maxim Group's Aaron Chew downgraded shares of First Solar (NASDAQ: FSLR) from Hold to Sell Monday morning. The analyst reestablished a $9 price target.
Chew said, "Though we had reserved hope its project business would prove sustainable, we believe the bull case for FSLR now rests solely on hope not reality. With (1) its competitive advantage gone with poly at $20/kg, (2) normalized system prices of ~$1.55/W yielding 10% gross margin and $1.00 EPS at a $0.55 cost/W, and (3) upside choked off by capacity cuts, FSLR needs a wholesale change in business model and valuation."
The analyst said he had been optimistic about "potential upside from new utility scale projects in emerging markets," however said "capacity closures, competitive c-Si pricing, and performance degradation problems in high heat" now limit that possible upside.
With First Solar shares down about 2 percent to $20.22 at last check, Chew's new price target represents potential downside of more than 55 percent.
For an analyst ratings summary and ratings history on First Solar click here. For more ratings news on First Solar click here.
Chew said, "Though we had reserved hope its project business would prove sustainable, we believe the bull case for FSLR now rests solely on hope not reality. With (1) its competitive advantage gone with poly at $20/kg, (2) normalized system prices of ~$1.55/W yielding 10% gross margin and $1.00 EPS at a $0.55 cost/W, and (3) upside choked off by capacity cuts, FSLR needs a wholesale change in business model and valuation."
The analyst said he had been optimistic about "potential upside from new utility scale projects in emerging markets," however said "capacity closures, competitive c-Si pricing, and performance degradation problems in high heat" now limit that possible upside.
With First Solar shares down about 2 percent to $20.22 at last check, Chew's new price target represents potential downside of more than 55 percent.
For an analyst ratings summary and ratings history on First Solar click here. For more ratings news on First Solar click here.
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