SolarCity Corp. (NASDAQ:SCTY), America’s no. 1 solar power provider, raised $345 million in tax equity from four separate partners in June and July to finance new solar projects. The financing facilities cover the capital cost of new equipment and installations, and make it possible for customers to pay less for solar power than they pay for utility power.
In addition to the $345 million in new funds, SolarCity also expanded its existing debt aggregation facility to $760 million, an increase of $110 million. SolarCity added two new lenders to the facility, which accounted for $70 million of the $110 million upsize. SolarCity also expanded its solar renewable energy credit (SREC) financing facility to accept five years of hedged SRECs, significantly lowering its cost of financing for SRECs and drawing more capital from the facility.
SolarCity’s capital markets team has raised more than $1.5 billion in project financing to date in 2016. The company has now created funds and facilities to finance projects with more than 30 different banks and corporate partners. Investment in rooftop and other small-scale solar is expected to attract $3.4 trillion over the next 25 years, according to Bloomberg New Energy Finance’s New Energy Outlook 2016 report. (Original Source)
Shares of SolarCity closed last Friday at $25.04, up $0.39 or 1.58%. SCTY has a 1-year high of $61.72 and a 1-year low of $16.31. The stock’s 50-day moving average is $22.81 and its 200-day moving average is $26.55.
On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report issued on July 7, Roth Capital analyst Gerry Sweeney reiterated a Hold rating on SCTY. Separately, on July 1, Credit Suisse’s Patrick Jobin downgraded the stock to Hold and has a price target of $27.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Gerry Sweeney and Patrick Jobin have a total average return of 0.0% and -15.7% respectively. Sweeney has a success rate of 48.9% and is ranked #2612 out of 4058 analysts, while Jobin has a success rate of 35.6% and is ranked #3855.
Overall, 2 research analysts have rated the stock with a Sell rating, 10 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $25.00 which is -0.2% under where the stock closed last Friday.
SolarCity Corp. engages in the business of renewable energy services. It offers installation, ongoing monitoring and repair services of solar energy systems in the U.S. The company provides services to homeowners, businesses, schools, non-profits and government organizations.