Pacific Crest’s Mark Bachman Raises Target on First Solar (Nasdaq:FSLR) - Maintains Outperform

Apr 09, 2009
Author: SCP Editor

April 9, 2009 – Analyst Comments – Pacific Crest’s Mark Bachman issued a note on First Solar (Nasdaq:FSLR) this morning, raising revenue and EPS estimates, as well as his price target from $209 to $227, which is 25x his 2010EPS expectations of $9.09. Bachman maintained his OUTPERFORM rating.

Key Takeaways:

·         Updated model to include the Optisolar transaction, which closed on Friday, as well as lower contract ASPs through 2010, and several other factors. He factored in an acceleration in cost-per-watt, driven by the Malaysian operation where the remaining eight production lines are ramping.  Despite ASP erosion, he expects profitability to improve as manufacturing costs come down;

·         “ASP declines represent an offensive weapon, not a defensive tactic.” Bachman is forecasting gross margins above 50% throughout 2009;

·         Increasing FY09/10 revenue estimates to $1.93 billion and $2.5 billion, and 09/10 EPS estimates to $7.89 and $9.09.

·         Maintaining OUTPERFORM rating, and price target of $229, noting that the company’s growth trajectory, market-leading position and belief that it can deliver subsidy-independent electricity prices which are competitive with retail rates warrant a premium multiple of 25x FY10 EPS estimates.


Seacoast Advisors, Inc. is a publisher. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. The material provided on the website is for general informational purposes only. No information on the website is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy...

Click here to read more. 


Our focus at Small Cap Pulse is to provide our readers with timely and insightful stock ideas and market information that is value-added. Some of the companies that we introduce are our clients, and our only axe to grind is making their story better known. Most of the companies that we discuss are just companies that we think you should know about, as well as the fundamentals that we think will drive their stock prices higher, and in some cases lower...

Click here to read more.