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

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

Maxim Group noted, “FSLR's stock has jumped 47% (vs. 2% for the S&P 500) since earnings, likely due to lopsided sentiment and a misinterpretation that its LT outlook is bolstered by (1) the first guidance hike in years and (2) the new Campo Verde project. While the stock seems cheap at ~5x 2012E-2014E EPS, this is inflated by 1x contracts priced at higher 2009 levels. Organically, FSLR's advantage vs. the Chinese has evaporated; even with new projects, unsubsidized solar system ASPs of ~$1.50 yield normalized EPS of <$1.00, and a DCF of contracted cash flows (less liabilities) suggest a stock worth no more than $9.”

First Solar closed on Thursday at $21.70.

Posted-In: Maxim GroupAnalyst Color Reiteration Analyst Ratings

 

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