Oppenheimer analyst Colin Rusch maintained a Buy rating on Vivint Solar (NYSE: VSLR) today and set a price target of $7. The company’s shares closed yesterday at $5.55, close to its 52-week high of $6.
Rusch observed:
“With VSLR posting strong bookings growth as its adjusted sales strategy takes hold, we believe the company’s financing with Lynch presents an critical evolution of the cash needs of the company. In essence VSLR deploys solar systems and becomes cash flow positive on those assets over the short term with a combined tax equity, debt, cash equity structure. VSLR generates a profit on its upfront costs while maintaining an ownership position of retained value of the assets and an option of renewals. While some investors may be less enthusiastic about VSLR selling off some of its upside, we view this as a prudent move to finance growth with limited exposure to the balance sheet. We reiterate our $7 PT.”
According to TipRanks.com, Rusch is a 5-star analyst with an average return of 13.9% and a 50.0% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Capstone Turbine Corp, Amer Superconductor, and Canadian Solar Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Vivint Solar with a $6.50 average price target.
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The company has a one-year high of $6 and a one-year low of $2.70. Currently, Vivint Solar has an average volume of 561.6K.
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Vivint Solar, Inc. engages in the provision of residential solar. It also designs and installs solar energy systems, and offers monitoring and maintenance services. The company was founded by Alexander J. Dunn, Todd R. Pedersen, and Tanguy Vincent Serra on August 12, 2011 and is headquartered in Lehi, UT.
