SolarCity's Q2 Outperformance & Outlook Pleases Credit Suisse
SolarCity's (NASDAQ: SCTY) narrower-than-expected second quarter loss and 62 percent revenue growth won the approval of a Credit Suisse analyst who maintained an Outperform rating on the shares.
The residential solar power company's adjusted loss of $0.96 was $0.03 narrower than Wall Street expected, although revenue of $61.33 million was below the consensus $63.24 million.
Yet Credit Suisse's Patrick Jobin boosted his price target to $97, from $93 and said company plans for reducing costs by $0.40 per share will bolster margins as federal subsidies for the solar power industry diminish in 2017.
The company told investors that additional automation of our processes, productivity improvement and lower unit costs will help achieve cost savings.
Jobin said Solar's bookings rate provides confidence in earnings estimates for 2014. But in the seasonally strong fourth quarter "it will be important to monitor whether any installation bottlenecks develop."
SolarCity was down seven percent near Friday's close at $70.35.
Latest Ratings for SCTY
|May 2016||Credit Suisse||Maintains||Outperform|
|Mar 2016||Morgan Stanley||Maintains||Overweight|
|Feb 2016||JP Morgan||Downgrades||Overweight||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.