SolarCity Corp (NASDAQ:SCTY), America’s #1 solar power provider, announced that SolarCity’s Board of Directors has formed a special committee of independent directors to evaluate the June 20, 2016, proposal from Tesla Motors, Inc. (NASDAQ:TSLA) (the “Proposal”) to acquire all of the outstanding shares of SolarCity common stock.
The Board has granted the special committee the exclusive authority to evaluate SolarCity’s long-term business plan and stand-alone opportunities for value creation against a broad range of strategic alternatives.
The special committee is composed of Donald R. Kendall, Jr. and Nancy E. Pfund. Mr. Kendall will serve as chair of the special committee. The special committee has retained Skadden, Arps, Slate, Meagher & Flom LLP as its legal counsel and Lazard as its financial advisor to assist in its review.
SolarCity does not intend to comment on or disclose further developments regarding the special committee’s evaluation unless and until it deems further disclosure is appropriate or required. (Original Source)
Shares of SolarCity closed today at $22.62, up $0.42 or 1.89%. SCTY has a 1-year high of $61.72 and a 1-year low of $16.31. The stock’s 50-day moving average is $21.58 and its 200-day moving average is $29.10.
On the ratings front, SolarCity has been the subject of a number of recent research reports. In a report issued on June 23, Morgan Stanley analyst Stephen Byrd downgraded SCTY to Hold, with a price target of $24, which represents a potential upside of 6.1% from where the stock is currently trading. Separately, on June 22, Needham’s Edwin Mok reiterated a Hold 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, Stephen Byrd and Edwin Mok have a total average return of -4.8% and 1.2% respectively. Byrd has a success rate of 41% and is ranked #3284 out of 3980 analysts, while Mok has a success rate of 54% and is ranked #1267.
Overall, 2 research analysts have rated the stock with a Sell rating, 10 research analysts have assigned a Hold rating and 4 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 $25.00 which is 10.5% above where the stock opened today.
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.