Friday, February 19, 2010

ThinkEquity, Merriman Curhan Ford Downgrade First Solar, Wedbush Lowers Price Target. Plus the Earnings Call Transcript (FSLR)

In early regular hours trading the stock is down $10.49 at $115.80. As we mentioned yesterday options holders suffer their maximum loss if the stock closes at the $120 strike price, a straight up wealth transfer to the writers.
Three from StreetInsider:
Merriman Curhan Ford Downgrades First Solar to Neutral; 2H10 Outlook Uncertainty

Merriman Curhan Ford downgrades First Solar, Inc. (FSLR) from Buy to Neutral.

Merriman analyst says, "We are downgrading to Neutral given the uncertain business outlook in 2H10 despite a strong 4Q09 and management reaffirming its 2010 earnings guidance. Solar module makers are expected to face revenue and margin volatility as a result of changing conditions in overcapacity and FiT policies. (We would note that solar inverters such as Power-One (PWER) (Buy-rated) are less susceptible to such factors given current inverter shortages and represents an installed unit play versus installed modules that depends on price.) As a result, we believe FSLR shares remain range bound ($117-129)...We are reducing our FY10 revenue estimate to $2.75B from $2.80B and our EPS to $6.15 from $6.45, along with cutting to our FY11 EPS estimate to $7.70 from $8.25 (consensus at $7.85)."
ThinkEquity Downgrades First Solar (FSLR) to Hold Following Q4 Results
Wedbush Cuts Price Target on First Solar (FSLR) to $110 Amid Earnings Sell-Off
Here's the transcript of the conference call. I'll have more later today.