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Gold/Mining/Energy : First Solar, Nasdaq: FSLR -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (2)	1/3/2007 12:13:54 PM
From: Jim Oravetz	Read Replies (2) \| Respond to of 912

Ahead of the Bell: First Solar Wednesday December 27, 9:05 am ET Analysts Note First Solar's Technological Advantages, Cite Execution As a Key Risk NEW YORK (AP) -- A slew of analysts began coverage of First Solar Inc. Wednesday, mostly with predictions of strong growth ahead, while one analyst said the company's competitive advantages are already priced into shares. The stock is up 36 percent from its Nov. 17 initial public offering at $20 per share. Shares of the Phoenix, Ariz.-based solar panel maker closed at $27.10 Tuesday on the Nasdaq. Credit Suisse analyst Shannon Mikus in a client note began coverage of the company at "Outperform" with a $32 target price. She said First Solar has a competitive edge because it makes panels using thin-film technology, a lower cost method with less semiconductor requirements and no silicon supply restraints, unlike the crystalline silicon technology used by rivals. The benefits of the thin-film technology are becoming more important as solar panel makers try to bring down costs to make solar competitive with retail electricity rates, she wrote. The company is increasing capacity, which could drive results if executed well, added Mikus. "First Solar is a well-positioned company in a fast-growing market," the analyst wrote. "In our view, solar demand will continue to outpace supply, driven by governmental incentives, increasing power needs, fossil fuel constraints, rising retail electricity costs, an increasing desire for domestic energy resources, and a growing awareness of environmental concerns and interest in 'clean' energy." Morgan Stanley analyst Scott R. Davis was more reserved, starting the company at "Equal Weight" with a $28 target price. In a note to clients, Davis cited the company's technological advantages and the growing industry, but said he believes those factors are already priced into shares. In addition, the stock prices in expectations of "flawless execution" by management, he added. The analyst noted the company faces risks including emerging, rival technologies in the rapidly changing field, changes in government programs supporting solar power, and poor execution of capacity increases. Cowen & Co.'s Robert Stone and Piper Jaffray's Jesse Pichel both began coverage Wednesday with "Outperform" or "Buy" ratings on the shares. Shares of First Solar were up $1.64, or 6.1 percent, at $28.74 in premarket electronic trading, from their Tuesday close on the Nasdaq at $27.10.