Here’s Why Canaccord Raised Price Target For SolarCity Corp (SCTY)
In a research report published Wednesday, Canaccord analyst Jed Dorsheimer reiterated a Buy rating on SolarCity Corp (NASDAQ:SCTY) with a price target of $76, after the company announced its financial and operating results for the second-quarter. SolarCity reported total GAAP revenue up 52% sequentially and 68% Y/Y to a record $102.8 million, consisting of $78.3M in lease revenue and $24.5M in system sales.
Dorsheimer observed, “We maintain our BUY rating on SolarCity, reiterating the long-term opportunity and belief that the company will outpace market growth and create significant value from its solar deployments over time. We continue to believe that SolarCity is well positioned in cost structure and market share to power through uncertainty and risks around the ITC expiry and new policy/utility related risks. The company’s new metrics outline the ability to create value in the event of a step down to a 10% equity tax credit environment.”
Furthermore, “We are encouraged by SolarCity’s desire to innovate and enter new markets. Recently, the company introduced its community solar plan for renters. Now, SolarCity is making a move into small-to-medium sized businesses. We believe that this can provide the company access to mostly untapped markets in order to further drive market share. Although the financing opportunity in SMB is currently limited to California, additional policy changes in large PV states can offer significant upside.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jed Dorsheimer has a total average return of -0.4% and a 41.7% success rate. Dorsheimer has a -4.9% average return when recommending SCTY, and is ranked #2806 out of 3718 analysts.