Roth Capital Reiterates Buy On Real Goods Solar Into 2Q14 Earnings Results
In a research note released yesterday, Roth Capital analyst Philip Shen reiterated a Buy rating on Real Goods Solar (RGSE) with a $6 price target ahead of the company’s second quarter earnings report.
Shen noted, “Heading into the Q2 earnings, we see upside to our Q2 expectations. We believe the US market is strong, and see RGSE likely being a key beneficiary. While we maintain our Street-low estimates for conservatism, given Enphase Energy’s (ENPH) strong report yesterday, we believe RGSE’s consensus estimates are attainable. Notably, the company increased its guidance on July 3”. The analyst added, “The US market is growing quickly, and we believe the Q2 period was a strong one for US installers. ENPH reported yesterday that its US revenues were up 50% YoY, and we estimate its volumes were up 63% YoY. While we maintain our Q2 RGSE estimates for conservatism, we see upside to our 10MW estimate in Q2 and believe implied consensus of 12MW is attainable. We currently forecast Street-low revenues of $23.9mn (vs. consensus of $29.9mn), GMs of 17.5% (vs. consensus of 18.2%), and EPS of -17c (vs. consensus of -10c). We note that there may be some downside risk to our commercial margins, but see limited impact to overall EPS”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Philip Shen has a total average return of -2.6% and a 33.3% success rate. Shen is ranked #2852 out of 3206 analysts.
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