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UPDATE: Credit Suisse Downgrades SolarCity to Neutral on Valuation

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In a report published Tuesday, Credit Suisse analyst Satya Kumar downgraded the rating on SolarCity Corp. (NASDAQ: SCTY) 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.

Latest Ratings for SCTY

DateFirmActionFromTo
Apr 2015Northland SecuritiesInitiates Coverage onOutperform
Apr 2015Avondale PartnersInitiates Coverage onMarket Outperform
Feb 2015JP MorganMaintainsOverweight

View More Analyst Ratings for SCTY
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Downgrades Analyst Ratings

 

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