SolarCity Corp (NASDAQ:SCTY) announced it has created a new tax equity fund to finance $249 million in solar projects. SolarCity’s financing partner in the fund—a Fortune 100 company—was not disclosed. This is the fourth solar project fund the two companies have partnered to create.
After it is fully allocated, the fund can be doubled in size to finance a total of $498 million in solar projects. The fund covers the capital cost of solar equipment and installation, making it possible for many homeowners to pay less for the power the systems produce than they pay for electricity from the local utility.
“SolarCity has now created 50 project funds with 21 different financing partners,” said Radford Small, SolarCity’s Executive Vice President, Capital Markets. “Distributed solar’s unique combination of strong returns and societal benefits has attracted a range of corporate and institutional investors and enabled hundreds of thousands of homeowners and businesses to pay less for power generated by solar panels than they pay for power from utilities.”(Original Source)
Shares of SolarCity are up 3% in after-hours trading. 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 $29.91 and its 200-day moving average is $39.07.
On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report issued on February 23, J.P. Morgan analyst Paul Coster downgraded SCTY to Hold, with a price target of $29, which represents a potential upside of 55.6% from where the stock is currently trading. Separately, on February 11, Barclays’ Jon Windham downgraded the stock to Hold and has a price target of $20.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Paul Coster and Jon Windham have a total average return of -7.9% and -6.8% respectively. Coster has a success rate of 41.6% and is ranked #3516 out of 3675 analysts, while Windham has a success rate of 47.1% and is ranked #2890.
Overall, one research analyst has rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and 7 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 $50.50 which is 170.9% 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.