Maxim Group Reiterates Sell Rating, $9 PT on First Solar

In a report published Monday, Maxim Group reiterated its Sell rating and $9.00 price target on First Solar (NASDAQ: FSLR).

Maxim Group noted, “Boosted by the start of Topaz, AV Solar, and the recognition of Silver State North, we expect higher-margin project revenue to rise to ~90% of the total in 2Q12, offset by losses on 153 MW of third-party module sales at a 6% gross margin. While our 2Q12 estimates inch up on lower cost/W from higher utilization in Germany, we assign little relevance to 2Q12 (and 2012-2015) EPS that is inflated by 1x high-priced contracts. With unsubsidized solar economics yielding EPS of <$1.00, we maintain our Sell and $9 price target.”

First Solar closed on Friday at $14.50.

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