Hapoalim Maintains Sell On First Solar (FSLR)

Hapoalim Securities is maintaining its Sell rating, but is raising its price target to $110 from $105 on First Solar FSLR. In a note sent to investors Hapoalim writes, "On Dec. 14, 2010, FSLR announced guidance for 2011 EPS of $8.75-$9.50, ahead of the Street at $8.61 and the “whisper” of ~$9.00. However, this translates into major execution risk as we estimate it (1) is heavily back-end loaded with 62% of revenue in 2H11, (2) assumes an implied avg. blended ASP of $1.45 (given “external” module ASPs of $1.42 and system ASPs of ~$3.30), (3) is contingent upon the ability to sell a number of major projects, and (4) is founded upon its forecast for balance of system/development costs that form the foundation of % of completion accounting. While the concurrent announcement of the sale of Agua Caliente is encouraging, it is already built into our estimates. While we raise our 2011 EPS estimate from $7.00 to $7.39 on lower cost/watt and taxes, we remain below guidance due to lower blended ASPs of $1.31 (and system ASP of $2.81). Our price target inches up from $105 to $110; we maintain our Sell rating." Shares of FSLR gained 24 cents yesterday to close at $137.04.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsElectrical Components & EquipmentHapoalim SecuritiesIndustrials
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!