SolarCity Corp (NASDAQ:SCTY) announced that on Friday, March 31, 2016 it closed a solar renewable energy certificate (“SREC”) transaction, subject to satisfying certain conditions, that will provide up to $40 million of residential and commercial solar funding. The financing will monetize the stream of SRECs produced by a portion of SolarCity’s underlying projects. The international banking partner was not disclosed.
“Solar renewable energy certificates have economic value that can be monetized and this first of its kind, stand-alone financing is evidence of the maturity of the SREC market,” said Ron Klein, Vice President, Capital Markets of SolarCity, who led the transaction. (Original Source)
Shares of SolarCity closed last Friday at $24.28, down $0.30 or -1.22%. SCTY has a 1-year high of $63.79 and a 1-year low of $16.31. The stock’s 50-day moving average is $22.63 and its 200-day moving average is $34.50.
On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report issued on March 30, Deutsche Bank analyst Vishal Shah reiterated a Buy rating on SCTY, with a price target of $49, which represents a potential upside of 101.8% from where the stock is currently trading. Separately, on March 29, Axiom’s Gordon Johnson maintained a Sell rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Vishal Shah and Gordon Johnson have a total average return of -22.6% and 14.7% respectively. Shah has a success rate of 26.1% and is ranked #3765 out of 3775 analysts, while Johnson has a success rate of 64.4% and is ranked #126.
The street is mostly Bullish on SCTY stock. Out of 12 analysts who cover the stock, 6 suggest a Buy rating , 5 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $41.33, which represents a potential upside of 70.2% from where the stock is currently trading.
SolarCity Corp. engages in the business of renewable energy services such as, solar energy products and services. It offers installation, ongoing monitoring and repair services of solar energy systems in the U.S. The company provides services to homeowners, businesses, schools, non-profits and government organizations. SolarCity was founded by Lyndon R. Rive and Peter J. Rive on June 21, 2006 and is headquartered in San Mateo, CA.