First Solar, Canadian Solar likely to beat quarter estimates, says BofA/Merrill. BofA/Merrill analyst Brian Lee says that despite the strong year-to-date outperformance across the group, he would lean into solar stocks heading into Q4 earnings as he sees momentum likely to persist for stocks that can beat, namely First Solar (FLSR) and Canadian Solar (CSIQ). Fundamentally, the analyst expects a much more constructive tone from companies heading into 2019, and sees both companies as best positioned to beat given First Solar's better margins and Canadian Solar's project sales that consensus is not capturing. On the flipside, Lee reiterates a Sell rating on SolarEdge (SEDG), which he sees as having the highest idiosyncratic risk and lower estimates owing to recent M&A that appears both dilutive and a key investor focus point.
