Wednesday, December 15, 2010

Corrected: Auriga's Bachman Reiterates OUTPERFORM on First Solar - Lowers Price Target (FSLR)

Update: "First Solar: Analyst Roundup (FSLR)"

the headline originally said Auriga had raised their PT. They actually lowered the target to $167 from the $175 they had set back on July 30.
Original post:
The stock is trading at $139.05, up $2.01. We are out as of Friday when it closed at $138.20.
[he's too modest to say so but the options more than tripled in 17 days -ed]
From Small Cap Pulse:
December 15, 2010 – Auriga’s Mark Bachman reiterated his OUTPERFORM rating on First Solar (Nasdaq:FSLR) post-guidance call, with a price target of $167. 
Guidance: For FY11 it forecasts net sales in the range of $3.7 to $3.9 billion, up about 46% year over year compared to the midpoint of 2010 guidance provided on October 28, 2010. The net sales forecast is comprised of $2.8 to $2.9 billion of module sales and $0.9 to $1.0 billion of EPC/project development sales. EPS is forecasted to grow to between $8.75 to $9.50 per fully diluted share and consolidated operating income is $875 to $975 million. These forecasts include $80 - $85 million of manufacturing start-up expenses and $15-20 million of factory ramp costs associated with plant expansions. The Company plans to invest $1.0 to $1.1 billion of capital to nearly double production capacity by year-end 2012, to maintain existing capacity and to add infrastructure to support growth. It expects to generate $1.0 - $1.1 billion of operating cash flow during 2011.
Key Takeaways:
·         Both revenue and EPS estimates exceeded the consensus estimates, and likely bettered the whisper numbers floating about the investment community....MORE