Piper Jaffray Reiterates OW Rating On FSLR

Piper Jaffray is reiterated its OW rating on shares of First Solar, Inc. FSLR. “First Solar's 1Q11 results benefitted from contracted module sales to European customers as average selling prices remained relatively stable, offsetting a deteriorating environment in Europe,” Piper Jaffray writes. “While management reiterated FY11 guidance, 2Q guidance implies flattish q/q revenues, well below consensus of $803m, on the pushout of revenue recognition from Agua Caliente (290 MW AC) into 2H11 due to continued delays in DOE loan guarantee funding. “We believe 2Q guidance was also likely impacted by the difficult macro environment in Europe. Operating income and cashflow guidance for FY11 were also lowered slightly. We recommend investors buy on weakness given FSLR's increased project pipeline to 450MW, up from 400MW, and likely realization of its full 600MW flexible pipeline in 2H11.” First Solar closed Tuesday at $134.66.