Auriga Upgrades First Solar

Auriga upgrades First Solar (Nasdaq: FSLR) from Hold to Buy, saying the recent sell-off creates an attractive entry point.

The firm said even with their reduced reduced estimates, they forecast 21% upside to their current price target of $138.

Analyst Mark Bachman said, "We attribute the recent decline in share price to the depreciation of the Euro relative to the Dollar, and not because of fundamental change with regard to supply/demand within the solar industry. With the recent announcement of FSLR pushing project business into 2011, our model recognizes that more module sales will be denominated in Euros in 2010. That said, we also recognize and credit FSLR's aggressive currency hedging activities and ~15% natural hedge from manufacturing in Germany to buffer the effect of a weakened Euro. Our new price target of $138 is 20X our 2011 EPS estimate of $6.89."
Source: StreetInsider

Labels: First Solar Inc, FSLR, solar analysis, Solar Stocks

posted by Ertai at 12:33 PM