Goldman Sachs: First Solar Shares a ‘Top Pick’ Buy
June 28, 2010 at 13:36 UTC || By Forex Playmaker
Goldman Sachs (NYSE: GS) sees upside for First Solar (Nasdaq: FSLR), initiating coverage on the stock with a “buy” rating and an optimistic target price.
Goldman analyst, Mark Wienkes, is naming First Solar a “top pick,” tantamount to a strong buy rating on the stock. (Of course, Goldman’s record with top picks has been a contrarian’s dream indicator in 2010.) While maintaining a neutral-bias on the sector as a whole, Mr. Wienkes views First Solar as having a particularly low cost structure. As a result, the company enjoys disproportionate earnings potential relative to the industry.
Mr. Wienkes adds, “In an increasingly competitive global market, solar panel manufacturers will need to lower costs by investing in R&D and capacity growth.”
Goldman Sachs is setting a price target of $150 per share for First Solar. The average 12-month price target, according to Thomson Reuters, is $147.50.
Equities Disclosure: Author is Long Trina Solar
