SolarCity Corp (NASDAQ:SCTY) announced that it has promoted Chief Operations Officer (COO) Tanguy Serra to the new role of President, reporting to CEO Lyndon Rive. The company also announced that CFO Brad Buss plans to retire in 2016. Buss will remain as CFO through the completion of SolarCity’s financial reporting for the fiscal year 2015—expected in early February—and will remain in an advisory role until later in 2016 to ensure a smooth transition. Mr. Serra will continue to oversee SolarCity’soperations in his new role, and has assumed management of the company’s structured finance, asset management and investor relations organizations. The company’s global finance and accounting organizations will continue to report to Mr. Buss until his retirement in February.
Mr. Serra brings a deep background in finance to his expanded role. Prior to joining SolarCity, he served as the first CEO of Vivint Solar, where he oversaw both finance and operations and was responsible for raising the company’s tax equity funds. Prior to Vivint, from 2004 – 2011, Mr. Serraserved as Vice President of TPG Capital, L.P., a private equity investment firm, where he managed a number of the firm’s investments. As part of his role he raised equity and debt capital and oversaw financial planning and analysis and cash forecasting for a range of portfolio companies. Prior to TPG Capital, Mr. Serra held financial analyst positions with Morgan Stanley Capital Partners and Merrill Lynch. Mr. Serra holds a bachelor’s degree in accounting and finance from ESCP Europe.
“Tanguy has a rare combination of experience in solar operations and finance, and he has a unique understanding of finance and operations atSolarCity,” said Rive. “As COO, Tanguy has significantly reduced the cost of our operations while maintaining strong growth, and his increased responsibilities as President will put him in a position to accelerate those trends.”
“Brad has been instrumental in enhancing our controls and processes, building a strong team and expanding our structured finance engine,” said Rive. “When we asked Brad to come out of retirement and join SolarCity we knew we wouldn’t be able to keep him forever, and we’re thankful for everything he’s done.”
“I don’t make this decision lightly, but the end of the fiscal year is good timing for the transition, and I’m leaving the finance organization in excellent hands,” said Buss. “We’ve built a great finance and accounting team, and our project finance engine is the envy of the solar industry. Now I look forward to the next chapter of my life with a focus on my family, board service and consulting.”
Mr. Serra joined SolarCity in May 2013 as executive vice president of operations, and was promoted to COO in February 2014. He has overseen a significant reduction in the company’s installation cost—from an average of $2.96 per watt in 2013 to $1.92 per watt in Q3 2015—and has helped the company more than triple its installation volume in the same timeframe.
“SolarCity’s mission to accelerate clean energy adoption is among the most important to the future of the planet of any business in any industry,” said Serra. “I am grateful for the trust Lyndon and the SolarCity team have put in me, and I look forward to driving the company’s mission on a global basis.” (Original Source)
Shares of SolarCity closed today at $28.57, up $0.36 or 1.28%. SCTY has a 1-year high of $63.79 and a 1-year low of $24.07. The stock’s 50-day moving average is $36.04 and its 200-day moving average is $48.77.
On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report issued on November 13, Bernstein Research analyst Hugh Wynne initiated coverage with a Hold rating on SCTY and a price target of $30, which implies an upside of 6.3% from current levels. Separately, on November 3, Morgan Stanley’s Stephen Byrd maintained a Buy rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Hugh Wynne and Stephen Byrd have a total average return of 13.5% and -3.1% respectively. Wynne has a success rate of 80.0% and is ranked #1434 out of 3636 analysts, while Byrd has a success rate of 45.0% and is ranked #2788.
The street is mostly Bullish on SCTY stock. Out of 10 analysts who cover the stock, 6 suggest a Buy rating , 3 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $46.00, which implies an upside of 63.0% from current levels.
SolarCity Corp is engaged in designing, sale, engineering, installation, monitoring, maintenance and financing of solar energy systems to residential and commercial customers.