Bank Of America Believes New Loan Product Is Good For SolarCity Corp.

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

. In the report, Bank of America noted, “SolarCity introduced MyPower, a no-money down solar financing plan that enables system ownership for customers, and allows them to claim the 30% investment tax credit (ITC) generated by their systems. Management had indicated on its most recent earnings call that a loan product was in the works. According to the announcement, MyPower will be available in eight of the company's existing service territories initially (AZ, CA, CO, CT, HI, MA, NJ, NY), has a minimum FICO score requirement of 680, and does not create a second lien on the associated home. "Our initial impression is that repayment can function similarly to existing power purchase agreements (PPAs) that fluctuate based on system output, or at a fixed annual rate as low as 4.5% for 30 years. The loan can be prepaid in any amount at any time without penalty, and is transferable in the event of a home sale. Although a loan product was expected, we view the initial details positively and reiterate our Buy rating and maintain our $95 price objective.” SolarCity Corp. closed on Tuesday at $54.55.