Avondale Still Likes Vivint Solar Amid CEO Transition

Vivint Solar Inc VSLR announced that David Bywater would be serving as the interim CEO, following the departure of Greg Butterfield. Avondale Partners’ Michael Morosi maintained a Market Outperform rating for the company, with a price target of $8. Despite the CEO transition and the related uncertainty, Vivint Solar remains on the Avondale Partners Conviction List.

Vivint Solar announced the departure of Greg Butterfield and named David Bywater as the interim CEO. Mr. Bywater has served as COO at Vivint Smart Home since 2013 and “has a long track record of leading large, growing divisions within multinational companies,” analyst Michael Morosi said.

Stock Should Absorb The News Well

Although Mr. Butterfield’s departure was unexpected and the transition is likely to cause some uncertainty, Vivint Solar’s stock is likely to “absorb the news well,” Morosi commented. He added that since the company was transitioning from its early, high-growth phase to a more stable financing and cash flow oriented model, there would be changes in what is demanded from top management.

“We believe the company will likely look for a CEO with material experience in the solar industry with a track record of raising tax equity and project finance. In the meantime, Mr. Bywater is more than capable of managing the business,” Morosi wrote.

Vivint Solar’s top priorities remain the same - closing additional tax equity capacity in the near term and driving operational efficiencies to achieve cost targets of $2.85-$2.95/W.