FBR Research Maintains Underperform On First Solar (FSLR) Heading Into Earnings

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09:28:52 pm on February 16, 2010

Earlier today FBR Research came out with an update on its rating of First Solar (FSLR) and the firm isn’t budging.  It maintains an Underperform rating and a $100 price target heading into earnings on Thursday.

Hat tip to Street Insider for the following analyst comments:

“We expect First Solar to meet or exceed our in-line with consensus estimates for 4Q09 when it reports on Thursday after the close. Due to demand pull-in in Germany in advance of changes to solar subsidy there, we also expect the company to highlight strong module shipments in 1Q10 (although, according to our industry thesis, a big portion of such modules will go into inventory until the weather improves). Despite a strong 4Q report and 1Q commentary, we are maintaining our below-consensus estimates for CY10 simply because of more-than-expected ASP pressure, especially as the excess inventory situation becomes more prevalent and known in the coming months. Other risks include any delays in the sale of PPA projects in Ontario.  We expect the company to meet or exceed our in-line with consensus revenue/EPS estimates of $577M/$1.48. Additionally, due to strong shipments into the German market in advance of changes to FIT there, we expect better-than-seasonal shipments in 1Q10, providing upside to our below-consensus revenue estimate of $543M, versus consensus of $556M.”

FSLR stock wasn’t hit on the rating reiteration today, rising more than $6.

:: >>> Click Here For Your FREE First Solar Analysis

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FBR and research do not go together. They are a sell side analyst looking for anything that remotely fits their bias. If not, they will make something up.

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