UPDATE: Credit Suisse Downgrades SolarCity to Neutral on Valuation

In a report published Tuesday, Credit Suisse analyst Satya Kumar downgraded the rating on SolarCity Corp.

from Outperform to Neutral, and raised the price target from $22.00 to $28.00. In the report, Kumar noted, “While we continue to believe SolarCity has good long-term prospects, and we expect the limited float could sustain near-term performance, we think it is prudent to take some profits at these levels ahead of the lock-up expiration on June 11. We estimate that nearly half the actively traded float of SCTY is short - a short squeeze may have contributed to SCTY's stock appreciation of over 300% since the IPO in December 2012 and 200% YTD. The lock-up would increase the tradable float by 8-10 times, which could ease the short squeeze and place downward pressure on the stock from current levels. We are revising our 2013 EPS from ($0.84) to ($1.54) and 2014 from ($0.90) to ($1.73) due to model revisions.” SolarCity Corp. closed on Monday at $35.88.