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There are a lot of people who doubt solar power will ever amount to anything more than a pipe dream. Maybe someone should tell First Solar that! Notable Calls submits: Banc of America is reiterating its Buy rating on First Solar and raising its price target to $115 from $91. The firm's new DCF-derived price target stems from several adjustments to its model, including higher capacity, lower cost/watt, and a declining tax rate offset by lower prices. The new model results in a FY08 EPS estimate of $1.51 (vs. $1.32 previously and Street estimate of $1.14) and a FY10 EPS estimate of $7.59. The new price target of $115 implies a 15x multiple on the firm's FY10 estimate, which they believe is warranted given the visibility of FSLR's growth. Following its recent run, First Solar appears expensive based at 84x the FY08 Street estimate of $1.14. BoA has confidence that First Solar will soundly exceed the FY08 Street estimate, due to a declining tax rate (29% in FY08 vs. 41% in FY07) and higher capacity (450 MW by end of FY08). More importantly, it believes that First Solar remains attractive at current levels based on its view that the company's earnings will meaningfully accelerate in the years following FY08. Specifically, the firm expects First Solar will increase EPS to over $7.50 by FY10 from $1.51 in FY08. Notablecalls: When you have an aggressive mover like FSLR just 4 bucks away from the $100 level, and there's a tier-1 firm out with a positive call -- you buy the stock, no matter how boring the call is! It's going to hit $100 today. First Solar also announced 1.2 Billion in new contracts this morining. No one has commented on this article.
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