Deutsche Bank Sees 45% Upside In Vivint Solar

In a research report issued today, Deutsche Bank analyst Vishal Shah initiated coverage on shares of Vivint Solar (NYSE:VSLR) with a Buy rating and a $20 price target, which implies an upside of 45% from current levels.

Shah wrote, “VSLR is one of the top residential solar installers in the country and is poised to benefit from accelerating growth of retail customers switching to solar as an increasing number of states reach grid parity across the US. We expect the company’s differentiated sales model and flexible supply chain will enable 100% YoY growth of installations through 2016. Vivint’s door-to-door sales model should enable lower customer acquisition costs and we expect the introduction of additional innovative financing structures to act as catalysts to help lower the cost of capital and drive additional growth.”

The analyst continued, “Vivint differentiates itself from peers through differentiated sales model, 10-20% lower customer acquisition costs, and asset-light sourcing strategy. The company is well positioned to continue gaining share as industry consolidation continues into 2017+, and remains technology agnostic with no manufacturing base existing or planned. Door to door sales techniques help the company efficiently utilize resources to install efficiently, generate leads, and achieve high penetration rates in targeted neighborhoods.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vishal Shah has a total average return of -16.2% and a 24.6% success rate. Shah is ranked #3335 out of 3347 analysts.

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