Roth Capital Reiterates Buy Rating On SolarCity;Raises Price Target to $80

Following SolarCity Corporation (SCTY) announcement that it plans to acquire high-efficiency module manufacturer Silevo for $200mn in a stock-based transaction, Roth Capital analyst Philip Shen reiterated his Buy rating and raised his price target from $65 to $80.

“We believe SCTY’s Silevo acquisition makes more sense when viewed through two primary lenses: (1) mitigating long-term supply risk as global demand continues to grow aggressively and (2) lowering upfront installation costs to retain more value per watt. While we still need several additional details before passing judgment (ultimate earn-out payments, net capex for the Silevo plant in upstate New York with potential incentives factored in, module efficiency at scale, manufacturing cost per watt, among others), the Silevo acquisition appears consistent with one of SCTY’s core LT goals: driving down upfront installation costs to boost asset yields and retain an increasing portion of system cash flows over time”, wrote Shen.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Philip Shen, who covers SCTY, currently has a one-year average return of -0.2% and a 40% success rate. He is ranked #2457 out of 3112 analysts.

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