Bank Of America Believes Capital Raise Clears Path For Growth And Module Production For SolarCity Corp

In a report published Tuesday, Bank of America analyst Krish Sankar reiterated a Buy rating and $95.00 price target on

. In the report, Bank of America noted, “Late last week, SolarCity priced a $500M convert due November 2019 at 1.625%. Beyond generic use of proceeds for future growth, we believe the capital raise should be sufficient to cover the company's net capital expenditure required by the Silevo module manufacturing facility estimated at $150M. In addition, ~$60M of proceeds will be used to pay the cost of a capped call transaction to offset potential dilution to SCTY shares at the stated conversion price of $83.53. We reiterate our Buy rating and maintain our $95 price objective.” SolarCity Corp closed on Monday at $61.20.