Tuesday, July 29, 2008

Your Pick: " First Solar Q2 Preview: Citi Sees Major EPS Upside". Or: " First Solar Q2 : Solid, No Blowout, Eyes on Malaysia" (FSLR)

They're both from ClusterStock:
The Street is expecting upside in Q2 from First Solar (FSLR) (reporting July 30th, after close), but leave it to Citi to expect even more. After all, FSLR won't hit Citi's $450 price target through garden-variety outperformance:
While the Street is broadly expecting a beat, we think FSLR should deliver enough EPS upside even in spite of what are apt to be lower margins out of the gate given initial under-absorption from the aggressive ramp in Malaysia. Going forward, we think Street models should pull in by nearly a full Q as FSLR is likely to raise full-year shipment guidance...MORE
AmTech's John Hardy remains wildly positive on First Solar (FSLR). He doesn't recommend a trade into earnings (Wednesday, July 30th, after close), but he thinks his long-term thesis is intact: the stock is going to the moon....

...The Bulls Will Point To:
  • No silicon constraints as with traditional players.
  • Opening of US utility market given low-cost solution....

The Bears Will Point To:

  • Limited operating history.
  • Must ramp production capacity very quickly in order to fulfill backlog commitments and expectations....MORE
Our thoughts?
First Solar to Beat and Raise, Market Yawns (FSLR)