Market Overview

Analysts Think SolarCity Investors Are Being Too Dramatic

Share:
Analysts Think SolarCity Investors Are Being Too Dramatic
Related
The Most Admired Tech Leaders: Musk, Gates, Jobs, Zuckerberg And Bezos Take The Lead
The New Tesla Is Already Up To Great Things: Check Out This 100% Solar Powered Island
Regime Change and the Clean Energy Contrarian (GuruFocus)

SolarCity Corp (NASDAQ: SCTY) posted a lower-than-expected loss per share and an increase in revenue in a fourth-quarter report, but shareholders were disappointed in the company's guidance. The company announced a first-quarter guidance of $(2.55) to $(2.65), below Street expectations of $(2.36).

Shares lost nearly 30 percent of their value on Wednesday morning as investors fled the stock. It traded recently at $20.25, down 23 percent.

Wall Street analysts seem to think investors are reacting a little too dramatically, however.

Morgan Stanley's Stephen Byrd called the sell-off "significantly overdone," noting the company's outlook was bearish coming into the report and the solar sector's strong fundamentals. Byrd maintained an Overweight rating with a price target of $104.

Related Link: Solar Stocks Are Getting Killed By SolarCity's Whiff

Bernstein's Hugh Wynne wrote that the sell-off was "unwarranted," citing a stronger solar installation outlook than when the company initially set 2016 guidance. The analyst expressed confidence in the company's ability to fund its 2016 growth.

Stifel Nicolaus, Raymond James and Deustche Bank all upgraded SolarCity to Buy, while lowering their price targets to $65.00, $60.00 and $49.00. Roth Capital also upgraded the company to Buy.

JP Morgan and Credit Suisse maintained Overweight and Outperform ratings and lowered price targets to $44.00 and $89.00, respectively.

Other solar companies' stock tumbled with SolarCity, with Sunrun Inc (NASDAQ: RUN) falling by 11 percent Wednesday morning. SunPower Corporation (NASDAQ: SPWR) was down nearly 3 percent.

Latest Ratings for SCTY

DateFirmActionFromTo
Nov 2016Axiom CapitalDowngradesHoldSell
Oct 2016Axiom CapitalUpgradesSellHold
Aug 2016BairdDowngradesOutperformNeutral

View More Analyst Ratings for SCTY
View the Latest Analyst Ratings

Posted-In: Analyst Color Long Ideas Price Target Top Stories Intraday Update Analyst Ratings Movers Trading Ideas Best of Benzinga

 

Related Articles (SCTY + RUN)

View Comments and Join the Discussion!