S&P Capital IQ Downgrades First Solar from BUY to HOLD, Target Price Reduced

October 18 00:00 2011

NEW YORK, October 18 (RainbowNewsLine.com) – Analyst Angelo Zino of S&P Capital IQ has downgraded the rating of downgrades the rating of First Solar (NASDAQ: FSLR) from BUY to HOLD, while reducing the estimates for the company. The 12-month target price has been reduced from $124 to $60.

Analyst Angelo Zino, in a research note published yesterday mentions that the company’s shares are downgraded due to the less confident view on stabilizing fundamentals and the solar pricing environment. The company has better earning visibility compared to its peers, given its strong US backlogs. The analyst, however, expresses his concerns regarding financing large projects. The analyst expects the company’s margins to decline given the increased pricing pressure and the need to stimulate consumer demand. The EPS estimates for 2011 and 2012 have been reduced from $9.13 to $7.37 and from $10.3 to $7.02, respectively.