Some firms may be cooling off on First Solar (FSLR) (see: Friedman Billings, Oppenheimer, Collins Stewart, and Kaufman Bros.), but not Deutsche Bank.
DB reiterated their BUY today after a meeting with management. Deutsche believes FSLR’s first factory in Malaysia is ramping up ahead of expectations and that FSLR is in a great position to beat estimates over the next few quarters. Target remains $300.
[If concerns about competition and margin compression continue to grow, “beating estimates” won’t likely drive the stock higher. In our experience, stocks struggle when margins are declining, no matter how well the company has managed expectations.]
First Solar (FSLR): More Competition Means More Multiple Compression (FSLR, AMAT)
Wall St. Loves First Solar (FSLR) Despite Price and Competition–Analysts Last To Know? (FSLR)
First Solar (FSLR) Collapse: Deutsche Bank Says Buying Opportunity (FSLR)