First Solar price target raised to $272 from $266 at BofA

BofA raised the firm’s price target on First Solar to $272 from $266 and keeps a Buy rating on the shares. The company’s Q3 EPS beat compared to BofA’s estimate seems to be faster pull through of Ohio Series 7 sales, the analyst tells investors. Looking to Q4, the firm is “incrementally more confident” that First Solar is on pace for a fiscal year beat and calls the company’s guidance “conservative,” noting that at the midpoint of its remaining guide the company is implying a “somewhat unreasonable” 600 basis point decline in margins. In addition, the firm considers the recent selloff in shares on perceived competition risk as “relatively baseless with all fundamentals continuing to support a clear pricing wedge” for First Solar.