SolarCity Corp. Stock Rating Upgraded by Goldman Sachs Group Inc. (SCTY)
SolarCity Corp. (NASDAQ:SCTY) was upgraded by investment analysts at Goldman Sachs Group Inc. from a “neutral” rating to a “conviction-buy” rating in a note issued to investors on Monday, TheFlyOnTheWall.com reports. The firm currently has a $80.00 target price on the stock, up from their previous target price of $65.00. Goldman Sachs Group Inc.’s price objective suggests a potential upside of 34.98% from the company’s current price.
The analysts wrote, “as well positioned as any solar company to capitalize on fast growth in the rooftop market, where its leading market share is growing in a 40GW medium-term opportunity in the U.S. resi segment alone. We forecast a 50%-60% volume CAGR for SolarCity through 2016, ahead of 45% market growth. Moreover, we see SolarCity’s leasing model providing leverage to attractive “own and operate” economics via contracted, recurring and long-term cash flows that we estimate provide intrinsic value of c.$40/share, even in a no-growth scenario through 2016.” Three key catalysts include solar asset-backed securities (ABS), retained value above $2 per watt, and new tax equity funding and investors. Lee further commented that although the initial ABS issue last year was small at $50 million, “the sub-5% yield was lower than expected and bodes well for future ABS offerings, which we see as catalysts in 1H14 on the back of increasing scale and potentially lower yields.”
In other SolarCity Corp. news, VP John M. Stanton sold 10,000 shares of SolarCity Corp. stock on the open market in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $57.86, for a total value of $578,600.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
Several other analysts have also recently commented on the stock. Analysts at Credit Suisse reiterated an “outperform” rating on shares of SolarCity Corp. in a research note to investors on Friday, November 15th. They now have a $75.00 price target on the stock. Separately, analysts at Deutsche Bank reiterated a “positive” rating on shares of SolarCity Corp. in a research note to investors on Thursday, November 14th. Finally, analysts at Robert W. Baird upgraded shares of SolarCity Corp. from a “neutral” rating to an “outperform” rating in a research note to investors on Thursday, November 14th. They now have a $71.00 price target on the stock, up previously from $50.00. Four research analysts have rated the stock with a hold rating, five have given a buy rating and one has given a strong buy rating to the company. SolarCity Corp. presently has an average rating of “Buy” and an average price target of $72.20.
SolarCity Corp. (NASDAQ:SCTY) traded up 8.91% during mid-day trading on Monday, hitting $64.55. The stock had a trading volume of 7,618,630 shares. SolarCity Corp. has a 1-year low of $13.11 and a 1-year high of $65.30. The stock has a 50-day moving average of $52.64 and a 200-day moving average of $44.14. The company’s market cap is $5.366 billion.
SolarCity Corp. (NASDAQ:SCTY) last announced its earnings results on Wednesday, November 6th. The company reported ($0.43) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.47) by $0.04. The company had revenue of $48.60 million for the quarter, compared to the consensus estimate of $41.40 million. The company’s revenue for the quarter was up 52.0% on a year-over-year basis. Analysts expect that SolarCity Corp. will post $-1.79 EPS for the current fiscal year.
SolarCity Corporation (NASDAQ:SCTY) is engaged in the design, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers.
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