Hapoalim Securities Has Notes On First Solar (FSLR)
Hapoalim Securities is raising its price target on First Solar, Inc. (NASDAQ: FSLR) to $105 from $100 after the company reported earnings after the bell yesterday. It is maintaining its Sell rating on shares.
In a note to clients, Hapoalim writes, "FSLR's 3Q10 results surpassed our and consensus estimates driven by revenue upside and lower-than-expected opex, but we expect the stock to come under pressure as new guidance for 2010 EPS of $7.50-7.65 likely didn't meet rising hopes it may hit $8.00. Moreover, hopes that the sale of Agua Caliente would occur in 4Q10 were dashed as management suggested 1Q11 was most likely. Finally, while FSLR generated healthy cash flow in 3Q10, evidence of the substantial cash needs of the project business rose to the surface. After raising our estimate for 2010 EPS largely on the 3Q10 upside and 2011 EPS on a higher ASP base, we raise our price target from $100 to $105."
Shares of FSLR are down $11.25 to $139.90 in pre-market trading, a loss of over 7%.
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Tags: Hapoalim Securities