Company Update (NASDAQ:SCTY): SolarCity Corp and Bank of America Corp Merrill Lynch Create New Program to Give Diverse Range of Investors Access to Tax Equity Investments

SolarCity Corp (NASDAQ:SCTY)  announced the creation of a renewable energy tax equity investment program with Bank of America Corp (NYSE:BAC) Merrill Lynch and the closing of the first financing in the program. The tax equity investment program will facilitate first-time and smaller investors entering the renewable energy tax equity credit market by lowering transaction costs and enabling smaller investment sizes. Investors can participate in tranches of $20-$25 million, which is a smaller investment than has been previously required. The financing will cover the capital cost of the solar equipment and installation, enabling homeowners to pay for the power the system produces, typically at a lower rate than their local utility charges. To date, SolarCity has raised funds to finance more than $8 billion in solar projects.

Investments in the growing solar industry can deliver strong financial returns and at the same time can reduce water consumption, pollution and greenhouse gas emissions. According to The Solar Foundation’s “National Solar Jobs Census 2014”, the solar industry continues to exceed growth expectations, adding workers at a rate nearly 20 times faster than the overall economy and accounting for 1.3 percent of all jobs created in the United States over the past year.

The new tax equity investment program is part of Bank of America’s current 10-year, $50 billion environmental business initiative to advance low-carbon economic solutions through lending, investing and facilitating capital for clients around the world. Since 2007, Bank of America has dedicated $39 billion to low-carbon and other environmental business activities. (Original Source)

Shares of SolarCity closed yesterday at $61.44 . SCTY has a 1-year high of $79.40 and a 1-year low of $45.91. The stock’s 50-day moving average is $59.64 and its 200-day moving average is $54.00.

On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report issued on May 7, Canaccord Genuity analyst Jonathan Dorsheimer reiterated a Buy rating on SCTY, with a price target of $72, which represents a potential upside of 17.2% from where the stock is currently trading. Separately, on May 6, Northland Securities’ Colin Rusch reiterated a Buy rating on the stock and has a price target of $68.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jonathan Dorsheimer and Colin Rusch have a total average return of -1.2% and 27.6% respectively. Dorsheimer has a success rate of 40.4% and is ranked #3018 out of 3610 analysts, while Rusch has a success rate of 63.3% and is ranked #124.

In total, one research analyst has assigned a Hold rating and 5 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $81.75 which is 33.1% above where the stock closed yesterday.

SolarCity Corp is engaged in designing, sale, engineering, installation, monitoring, maintenance and financing of solar energy systems to residential and commercial customers.

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