Tuesday, August 24, 2010

UBS (NYSE:UBS) Upgrades First Solar (Nasdaq:FSLR) to "Buy"

UBS (NYSE:UBS) upgraded First Solar, Inc. (Nasdaq:FSLR) Monday, and shares rose in response to raising them from a "Hold" to a "Buy."

UBS analyst Stephen Chin also increased the price target on the company from $136 to $150.

Reasons behind the upgrade include an estimated increase in global solar demand through 2011 will be from 16.4GW and 19.2GW, a significant increase from the prior estimate of 12.4GW and 15.0GW.

Specific to First Solar is the possible sale of their Agua Caliente project, which would add to their bottom line, as well as poly spot prices increasing 20 percent in the second half.

First Solar also increased their earnings per share guidance for 2010 and 2011 to a range of $7.50 and $8.80, up from their previous estimate from $7.30 and $8.00.

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