SunEdison SUNE shares are trading higher following a buy rating and $30 price target (27.7 percent upside) from Canaccord.
Josh Barlbeau of Canaccord likes the solar industry as a whole. Global adoption of clean energy and the falling cost of solar power are of the reasons Barlbeau likes the space.
Regarding SunEdison specifically, the research note states, “The company has among the largest solar project pipelines, is very well geographically diversified – insulating it from inevitable political risk and has significant experience in acquiring, developing, delivering and now owning solar assets.”
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Barlbeau also highlights that SunEdison produces its own products, but has the flexibility to buy components from third parties.
in terms of valuation, the solar industry is trading around 14 times 2015 earnings and one times 2015 sales. The $30 price target is based on a 10 times 2015 earning multiple, assuming massive growth.
Shares of SunEdison were last trading at $23.50, up 1.64 percent on the upgrade.
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