Adami: Looking for heat in solar space

We mortified some but educated many by writing about Hans Christian Andersen and the opportunities in the solar space on Dec. 18. On that day we highlighted First Solar (FSLR), JA Solar (JASO), and Trina Solar (TSL) as three ways to participate in the sector. Since then enough things have happened to warrant an update.

On Dec. 21 First Solar and NRG Energy announced the start of commercial operation for the photovoltaic solar project in California. Of course, the very next day Sen. Dianne Feinstein (D-Calif.) introduced legislation to protect 1 million acres of land in the Mojave Desert. Not surprisingly, the headlines generated by Feinstein's bill were not exactly bullish for the solar names.
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Hershey also said FSLR recently withdrew its application for a 150-megawatt project in San Luis Valley, Colo. She noted that about 70 percent of First Solar's revenue comes from Germany and is worried that a change in tariff policy could lead to a drop in orders.

However, she did leave her EPS forecast at $6.28 for this year. Placing a 20 multiple on the stock gets you to her price target of $125.

Labels: First Solar Inc, FSLR, Solar News, Solar Stocks

posted by Ertai at 11:12 AM