Noting 'Flat Sales and Lower Operating Income', Hapoalim Securities Lowers First Solar Price Target (FSLR)

Hapoalim Securities lowered its Price Target on shares of First Solar, Inc. FSLR Monday, noting that "its outlook for flat sales and lower operating income in 2Q11 leaves it even more back-end loaded." The ratings firm drops its Price Target to $105 on a Lower 13-14x Target P/E, "to reflect rising earnings risk in 2H11." First Solar is engaged in the manufacture and sale of solar modules with an advanced thin film semiconductor technology, and it designs, constructs and sells photovoltaic solar power systems. First Solar reported 1Q11 EPS of $1.33, beating Wall Street forecasts of $1.17. Hapolim notes that "In the face of escalating concerns surrounding the impact subsidy policy changes in Italy and France are having on solar demand, inventories, and pricing, FSLR may have offered some solace in better-than-expected 1Q11 results but also likely fanned the flames of worry with falling margins and an uninspiring 2Q11 outlook." Further, "As our outlook for module pricing pressure in 2H11 remains below consensus expectations and assumes FSLR exits the year with ASPs of ~$1.20/W, our 2011 EPS estimate holds steady at $8.03, well below FSLR's guidance of $9.25-$9.75 and the Street at $9.52." Shares of First Solar, Inc. fell by more than 2%, or $2.87, to $134.66.