Deutsche Bank Maintains Hold On First Solar (FSLR), "Stock Fairly Valued At This Level"

Deutsche Bank is out this morning maintaining its Hold rating on First Solar (FSLR) but has slashed the price target from $170 to $125.  The firm believes the company is fairly valued at these levels.

Hat tip to for the following analyst comments:

“Recent pricing inputs from companies like Yingi (more substantial ASP declines) and less-than-hoped-for improvement in the demand picture for larger systems (due largely to financing availability) cause us to reassess our outlook for solar PV companies through 2010. We are lowering our production and ASP estimates for First Solar, which lower our revenue and EPS estimates for 2010. We believe the stock is fairly valued at present levels and maintain our Hold rating.”

“As the clear industry LCoE leader, with a strong long-term pipeline, over ~2/3rds of projected capacity under long-term contract, and the strongest company fundamentals in the industry (e.g. long-term LCoE advantage, strong positive cash flow, a strong balance sheet, and a track record of solid execution) offset by mounting pricing pressure and what we anticipate will be margin compression, and ongoing weak industry fundamentals, we believe the company deserves a premium valuation to peers.”

Leave a Reply

Your email address will not be published. Required fields are marked *