Mark Bachman of Pacific Crest weighed in with relatively surprising comments this morning about First Solar (Nasdaq:FSLR), downgrading the stock to a NEUTRAL rating, stating that “potential for upside has faded”. This is surprising because Bachman has been one of the strongest, and most eloquent advocates of FSLR on the Street, so we would recommend taking Bachman’s note seriously.
· Finds no more upside potential to 2010 estimates – said that while additional project announcements and capacity additions will be forthcoming, likely to be catalysts for 2011 and not 2010
· Near-term, believes FSLR will post better-than-expected results for Q3 and so “would own shares into the print” – “Our checks suggest that Q3 shipments were strong and that results should meaningfully beat the consensus estimates. We believe that our sell-side competitors are unduly bearish with concerns that ASPs will erode, and we are positioned more than $0.40 higher with our EPS estimates. The EUR/USD exchange rate has also been favorable again in Q3, averaging 1.385 versus our modeled input of 1.20. We are looking for shipments of 330 MW versus capacity of 300 MW.”
· Could likely lose market share in 2010...MORE