UPDATE: Cantor Fitzgerald Reiterates Hold Rating, Lowers PT on Real Goods Solar
In a report published Monday, Cantor Fitzgerald reiterated its Hold rating on Real Goods Solar (NASDAQ: RSOL), but slightly lowered its price target from $2.00 to $1.75.
Cantor Fitzgerald noted, “Real Goods has had two management changes in the past year, botched (in our opinion) an acquisition, lost market share in its residential installation business, and on November 5 reported an awful quarter. The company wrote off enough in the quarter to drop book value from $1.75 to $0.29 per share...We are quite disappointed by the company's execution. At the time of the Alteris acquisition, we expected that overall company revenues would double. In the latest quarter, revenues decreased 16% y-y, implying that the company has lost market share since the acquisition. In our view, regaining that share and revenue momentum will likely be challenging in a very competitive market.”
Real Goods Solar closed on Friday at $0.45.
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