UPDATE: Goldman Sachs Initiates SolarCity at Buy on Demand and Cost Outlook

Goldman Sachs initiated coverage on SolarCity SCTY with a Buy rating. Goldman Sachs noted, "We see upside in SolarCity's downstream exposure to the growing distributed rooftop solar market and in its unique financing model. As a vertically integrated developer and installer, we view SolarCity's business model favorably given its leverage to: (1) declining input costs upstream in the solar value chain and (2) growing demand for rooftop solar in the US. We expect SolarCity to grow installation volumes at a 30%-35% CAGR through 2016 due to its large addressable market and compelling customer value proposition." SolarCity closed at $14.62 on Thursday.