First Solar, Inc. had its price target raised by Citigroup Inc. (NYSE:C), while have its "Hold" rating maintained by the financial giant.
"On unchanged volume and module/EPC mix assumptions, we are assuming -$0.03-
0.05/W better module pricing. As a result, we are raising F2011 EPS from $7.47 to $8.08 (Street $8.26). On 2010, however, we are trimming EPS in each of CQ3 and CQ4 by - $0.05-0.10 as we true up our model to reflect slightly more aggressive near-term pricing as FSLR moves to take share in these new European markets. While trimming, we are notably now just in-line w/consensus so we don't see a lot of downside risk to estimates in 2H:10. Our F2012 EPS of $10.59 is largely unchanged. On the back of our new estimates, our target is tweaked slightly higher to $145 meaning FSLR is fairly valued at this price. Maintain Hold," said Citi analyst Timothy M. Arcuri in a note.
First Solar announced it had landed sales agreements with seven existing customers for a 380-megawatt increase for orders in 2011. For the most part the deals are located in Europe.
They are also increasing manufacturing capacity in France and Germany to meet demand in the region.
The company closed Thursday at $140.56, gaining $1.92, or 1.38 percent.
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