Broadpoint Maintains First Solar (FSLR) Buy Rating But Lowers Price Target

Yesterday Broadpoint came out reiterating its Buy rating on FirstSolar (FSLR), but lowered the price target to $165 which is still wellabove the current price of $120

Hat tip to for the following analyst comment

“Following updated cost reduction guidance from poly-based moduleproducers last week, we are reducing our FSLR 2010 estimates to betterreflect a more competitive landscape in 2H10 (namely TSL projecting$0.70/w processing cost). We still view FSLR as the best positionedsolar company industry-wide, and see visibility into a return tocapacity expansion/earnings growth in 2011 as a key catalyst for thestock…We are revising FY10 revenue and EPS from $2.6B and $8.86 to$2.4B/$7.11 and introducing FY11 revenue and EPS of $3.1B and $8.96.While we are essentially pushing out our earnings number one year, weremain constructive on FSLR shares given the company’s superior marginstructure, return on capital metrics, and our belief investors willreturn to shares as the capacity ramp in 2H11 becomes morevisible…While we are disappointed by FSLR’s underperformance YTD, wesee the set-up as improving into 1H10 following a significant marginreset, coupled with capacity expansions in the out-year. While FSLRwill prove to be a massive share gainer in 2009, the stock hasunderperformed given the outlook for industry lagging earnings growthin 2010. We believe the stock will likely begin to act better in 1H10as FSLR is set to grow in-line or better than the group in 2011.”

Broadpoint Maintains First Solar (FSLR) Buy Rating But Lowers Price Target


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