Roth Capital Cuts Real Goods Solar Price Target Following Earnings

In a research report published Thursday, Roth Capital analyst Philip Shen maintained a Neutral rating on Real Goods Solar (NASDAQ:RGSE) and reduced his price target to $0.80 (from $1.85), which represents a slight upside potential from current levels.

Shen wrote, “RGSE posted a miss on its residential metrics vs. our estimates and did not issue guidance. Despite the miss, positives in the quarter include (1) ASPs being up 6.5% YoY and (2) Backlog increased 137% YoY to $58mn. Management has an aggressive plan to grow its operations, while focusing on the higher-margin residential and small commercial segments, which may require additional investments in sales and in-house construction staff.”

“The liquidity situation, however, remains tight, in our view, with just $1.8mn of cash as of September. Additionally, the company is in the midst of negotiating a new loan agreement with Silicon Valley Bank that would potentially reset its covenants.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Philip Shen has a total average return of -8.2% and a 27.1% success rate. Shen has a -16.7% average return when recommending RGSE, and is ranked #3313 out of 3377 analysts.

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