Analysts are weighing in on solar power giant SolarCity Corp (NASDAQ:SCTY) and mobile gaming firm Glu Mobile Inc. (NASDAQ:GLUU), with mixed ratings. Let’s see how things are shaping up for these companies.
Roth Capital analyst Philip Shen reiterated a Buy rating on shares of SolarCity, with a price target of $65, as the California Public Utilities Commission (CPUC) is expected to vote this Thursday on a final plan for what the state’s next phase of net energy metering (NEM) policies will look like.
Shen commented, “The stock is likely not yet out of the woods until the CPUC finalizes its NEM 2.0 decision (potentially on Thursday). That said, if the NEM policy is finalized, we would expect the stock to react positively, assuming there is not much change from the original Proposed Decision. We believe the key principle of “incrementalism” will guide the CPUC, and we do not expect a NV-type outcome.”
The analyst continued, “We believe the ABS and SCTY’s monetization strategy hinge on locking down the final NEM 2.0 structure in CA and removing any sense of ambiguity especially in the face of the recent adverse NEM ruling put out by the NV PUC. Without policy certainty, we think the ABS markets may become incrementally more challenging. The sooner NEM 2.0 gets finalized, the better for the industry and for SCTY’s ability to access ABS markets and pursue asset monetization.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Philip Shen has a yearly average return of -15.0% and a 25.4% success rate. Shen has a -20.5% average return when recommending SCTY, and is ranked #3557 out of 3607 analysts.
Out of the 10 analysts polled by TipRanks, 7 rate SolarCity stock a Buy, 2 rate the stock a Hold and 1 recommends a Sell. With a return potential of 92%, the stock’s consensus target price stands at $64.80.
Glu Mobile Inc.
Wedbush analyst Michael Pachter reiterated a Neutral rating on shares of Glu Mobile, with a $3.30 price target, as the company will be reporting fourth-quarter results after the market close on Wednesday, February 3.
Pachter wrote, “Q4 results will likely exceed guidance due to relatively low expectations at year-end and management’s typically conservative approach to pacing the Street. Our non-GAAP estimates are for revenue of $52 million, adjusted EBITDA of $(1.9) million, and EPS of $(0.02), versus consensus of $50 million, $(2.8) million, and $(0.03), and guidance of $50 – 52 million, $(3) – (2) million, and $(0.03) – (0.02).”
“We believe Q1:16 guidance may lag the Street’s current expectations. The consensus Q1:16 non-GAAP revenue figure of $56 million implies sequential topline growth of 10% or more, which we believe may prove to be unrealistic given apparently weak starts for Katy Perry Pop, James Bond: World of Espionage, and a number of the company’s other 2015 releases,” the analyst continued.
According to TipRanks.com, analyst Michael Pachter has a yearly average return of -8.7% and a 37.4% success rate. Pachter is ranked #3526 out of 3607 analysts.
As of this writing, 5 analysts are bullish on Glu Mobile and 4 are neutral. The average 12-month price target on the stock is $5.31, marking a 134% potential upside from where the stock last closed.