RBC Capital Upgrades First Solar, Inc., But Margins Under Pressure

RBC Capital Markets upgrades First Solar, Inc. (NASDAQ: FSLR) with a price target of $136, about a 10% premium over FSLR’s stock price of $122.99.

RBC Capital says First Solar looks attractive into the Dec. 16th conference call. RBC said it believes FSLR guidance will serve to temper some of the more aggressive 2010 estimates on the Street to reflect a more realistic ASP decline scenario, and a new plant announcement could drive positive longer-term earnings growth clarity.

RBC does believe the continued oversupply dynamics from competitive silicon panel producers will keep pricing and margins under pressure for the near-term.