In a research report released today, UBS analyst Julien Dumoulin Smith reiterated a Neutral rating on shares of SolarCity Corp (NASDAQ:SCTY), while reducing the price target to $48 (from $53), which represents a slight upside potential from current levels.
Smith explained, “We are revising up our CAFD deployment estimates as we see real potential for mgmt to hit at the top end of its implied CAFD guidance, driving north of $300 Mn/yr in organic CAFD from its PowerCo assets through 2017. Despite the higher confidence in estimates, we see the equity as having an understated exposure to the YieldCo sector, with sensitivities in our model to shifts in exit valuations driving scenarios for downside to limited Devco value. With our valuation reflecting full execution at the top end of its implied CAFD guidance through ’17, shares are increasingly pricing positive news.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Julien Dumoulin Smith has a total average return of 2.7% and a 60.0% success rate. Smith is ranked #1608 out of 3769 analysts.
Out of the 14 analysts polled by TipRanks, 12 rate SolarCity stock a Buy, while 2 rate the stock a Hold. With a return potential of 67.2%, the stock’s consensus target price stands at $77.77.