Senior analyst Gordon Johnson of Axiom Capital believes First Solar’s first quarter beat was due to a large project sale of the company’s Moapa project and not due to operational excellence.
Related Link: First Solar Up 17% After Q1 Report, Raised Guidance, Johnson Upgrade
First Solar did up its expected 2017 sales guidance by $50 million due to improved visibility on project sales and moved its expected gross margins higher by 150 basis points.
Following the earnings beat, Johnson upgraded his rating on First Solar to Hold.
“We believe the investment case on FSLR rests not with how much the company will earn in ’17, but rather where module prices will be in ’19 & what FSLR’s costs will be at that time,” Johnson said.
Axiom Capital believes the fair value of the stock could approach $76 per share by 2019 assuming current module price increases.
The stock traded recently at $34.21, up 12.6 percent on the day.
Latest Ratings for FSLR
|May 2017||Bank of America||Upgrades||Underperform||Neutral|
|May 2017||Axiom Capital||Upgrades||Sell||Hold|
|May 2017||Credit Suisse||Upgrades||Underperform||Neutral|
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