There is an interesting call after First Solar Inc. (NASDAQ: FSLR) blew past earnings expectations and guidance today. Lazard Capital Markets alternative energy analyst, Sanjay Shrestha, has reiterated his BUY rating on the stock. But his target has been raised to $300.00 from $350.00.
Shrestha noted that its output translates to a throughput increase to 45MW per line, up from 44MW in 4Q07, suggesting capacity of 1,035MW by year-end 2009.
He believes that First Solar has $6.4 billion of total volume to be shipped under long-term contracts and it additionally has a 7.5MW order with SCE in Blythe, California, pending CPC. Considering a factory cost ramp, efficiency/throughput gains, and lower cost/watt in Malaysia, Shrestha said he is raising 2008-2010 estimates.
This new $350 higher target represents a 40x multiple on recently raised 2010 estimates of $10.00, discounted back 15% for one year.
Interestingly enough, Shrestha’s target of $350 is well under some other analyst targets out there.
Jon C. Ogg
April 30, 2008
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
