First Solar (NasdaqGM: FSLR) stock could rise by as much as $2 today, as investors push the stock past its all time high because of positive ratings by Bank of America.
Analysts raised the price target from $72 to $75 saying it has the best fundamentals in the solar industry. Bank of America expects First Solar to deliver on its announced thin film capacity because it does not depend on polysilicon. FSLR’s capacity should increase from 75 MW in FY06 to 275 MW in FY08.
First Solar is positioned to produce thin film solar at competitive grid prices of $1.00-1.25/watt by 2010-2012, with gross margins of 35-40% and operating margins of 25%. Its production costs are expected to decline from $1.25/watt in 4Q06 to $0.60-0.80/watt in 2010-2012 from greater manufacturing efficiencies and lower labor costs.
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