Wednesday, December 15, 2010

First Solar (NASDAQ:FSLR) Best Positioned for Challenging 2011

Susquehanna notes that the solar sector is going face extreme challenges in 2011, and consider First Solar (NASDAQ:FSLR) as the best positioned of all solar firms to face the weak market, especially in the first half of 2011.

One positive for First Solar is they "recently received all regulatory approvals, with the local grid company planning to purchase the project upon the completion. What is note worthy is that FSLR's project received a FIT of RMB 1.09/kwhr vs. other projects that were given less than RMB 0.90/kwhr of FIT."

Concerning module ASPs, Susquehanna noted "si-based module ASPs quoted for 1H11 delivery are already tracking close to $1.50/w. With minimum difference of $0.20/w required b/w FSLR and si-based module ASPs, there could be some downside risk to our conservative (FSLR) module ASPs."

First Solar claims they're going to exceed analysts' EPS and revenue estimates in 2011, with sales reaching about $3.7 to $3.9 billion.

EPS estimates by First Solar are from a range of $8.75 and $9.50 in 2011, above $8.61 analysts are looking for. Susquehanna sees revenue of $3.56 billion, and EPS of $8.47 a share.

First Solar closed Tuesday at $137.04, up $0.24, or 0.18 percent.

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