UPDATE: Goldman Sachs Raises PT on SolarCity to $20 on Partnership with Honda

Goldman Sachs maintained SolarCity

with a Buy rating and raised the price target from $18.00 to $20.00. Goldman Sachs noted, "We view the newly formed partnership with Honda as a positive development as it provides SolarCity with another distribution network and increased customer exposure beyond current channels such as Home Depot. Given our estimated total installation costs of c.$4.00/W, we estimate the $65mn fund could finance upwards of 15 to 20 MW of installation volume. Honda indicated that as many as 3,000 customers could qualify for the discount and that the company expects to run the course of the program in 2013. Additionally, we believe the volume opportunity at Honda dealerships could expand over time, which would drive incremental upside to commercial volumes, in our view." SolarCity closed at $18.51 on Wednesday.