FBR has had to defend its bearish position on First Solar (FSLR) over and over again. Now, following another excellent quarter by FSLR, the firm tries to bring down the market’s enthusiasm a few notches:
As much as the bulls will be loud, jumping up and down, pointing to the magnitude of the upside that FSLR was able to print and guide to, we take an opposing view and actually continue to highlight our main point of concern, which is the U.S. market.
Call us old and grumpy, but the facts speak for themselves: The U.S. utility market is one that is evolving on a daily basis, and for photovoltaic (PV) companies such as FSLR to be able to sell more than 100 MW of modules and/or systems, many moving parts would have to come to a standstill.
…with FIT [feed-in tariff] scheme in Europe just about to take a hit, and with increased uncertainties associated with the U.S. utility market, we believe there is increased risk to CY10 EPS expectations of >$10, which we believe is required to support the stock at current levels!
FBR reiterates UNDERPERFORM on First Solar (FSLR), but does raise their target slightly from $200 to $210.