Needham Raises First Solar Revenue And EPS Estimates Because Of This

First Solar, Inc.

revenue and EPS estimates were raised by investment research firm Needham & Company, LLC. because its "positives are priced in." Shares of FSLR are currently trading down -0.11 percent at $65.74 on Tuesday. Needham re-issued a Hold stock rating with a price target of NA. The firm downgraded FSLR to a Hold rating from Buy with a price target of $70 on December 10. Due to significant rebound of FSLR's share price following the extension of the U.S. Solar Investment Tax Credit (ITC), and with shares trading within less than 10 percent of the firm's previous price target of $70, Needham has made adjustments to their estimates, the firm commented in a report released Monday. "We believe the extension of the ITC will enable FSLR to deliver more consistent revenue in the next few years, but lower pricing and margins of project COD beyond 2016 should lead to reduced profitability beyond 2016," Needham noted. Needham adjusted estimates based on change in the ITC. According to the firm, eliminating the company's need to increase its delivery schedule, should enable them to meet its 2016 EPS target range and support improved margins. "Due to the extension of the U.S. solar ITC, we expect FSLR to deliver lower revenue in 2016 as the ITC eliminates the need for the company to rush project completion within 2016," the firm noted.