First Solar (FSLR) Threatened By Applied Materials (AMAT)

Friedman Billings is very positive on Applied Materials’ (AMAT) solar business, which makes them increasingly negative on First Solar (FSLR), even after downgrading FSLR to Underperform on May 21. FBR:

…we see the speed of the AMAT-based TF [thin-flim] line rollout (in less than a year’s time) and the increasing number of end customers signing long-term contracts with AMAT’s customers as positive for AMAT but negative for FSLR (because of the competitive threat and its impact on FSLR’s ASPs/margins).

Friedman cites the fast roll-out at AMAT customer Signet Solar, which AMAT is providing the thin film silicon solar PV modules to. FBR is also encouraged by the “Contract-o-rama” Signet is currently experiencing, which means more future business for Applied Materials.

FBR maintains OUTPERFORM on Applied Materials (AMAT), target $25.

See Also:
First Solar (FSLR): More Competition Means More Multiple Compression
Wall St. Loves First Solar (FSLR) Despite Price and Competition–Analysts Last To Know?
First Solar (FSLR): Competitive and Technology Risks, Stock Fairly Priced

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