UBS analyst Stephen Chin this morning raised his rating on First Solar (FSLR) to Buy from Neutral, lifting his price target on the stock to $150, from $136.
Chin writes that the upgrade in part reflects his more upbeat view on solar demand: his new 2010 forecast is for 16.4 GW, up from 12.4; for 2011 he goes to 19.2 GW, from 15 GW. He now sees growth next year of 50% in Italy and 58% in France; he raises his forecast on First Solar’s shipments to those two countries to 400 MW of modules from 250 MW.
Chin sees polysilicon spot prices rising 20% in the second half to $60/kg, with steady prices through mid-2011, limiting solar module price pressure.
The analyst raises his EPS estimate for FSLR for 2010 to $7.50, from $7.30; for 2011, he goes to $8.80, from $8. Chin notes that he now thinks the company’s new module factories in Germany and France will ramp a bit sooner than expected to address higher-than-expected industry demand.
FSLR this morning is up $3.04, or 2.4%, to $128.07.
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