Piper Jaffray Reiterating Overweight On First Solar (FSLR)

Piper Jaffray is reiterating its Overweight rating and $200 price target on shares of First Solar FSLR. In a note to investors, Piper Jaffray writes, "We see possible upside in 4Q10 results from pricing and/or lower costs. However, our outlook for 1Q11 is more cautious as we estimate 86% of revenue will likely come from modules sales which are based on long term contracts with an embedded ASP decline in January to account for FIT cuts in Germany, as well as continuing rebates to some customers. As for 4Q10, we look for results to be buoyed by lower manufacturing costs due to recent efficiency improvements. Additionally, higher USD/Euro compared to guidance could mean FY11 guidance moves up as much as $0.30-$0.50 on the bottom line. Despite the near-term cautiousness, FSLR remains our top pick over the long term due to its industry leading low cost structure and robust pipeline. We reiterate our OW rating and $200 price target." Shares of FSLR lost $4.12 yesterday to close at $164.10, a loss of 2.45%.