Market Overview

My goal is to be on stage with my computer and let you
see my screen and make sure you know what buttons to
press, where you’re getting in & out, how to calculate
risk, your targets — all of those things.
It’s real-life trading. Make sure you sign up!
- Jerremy Newsome

Analyst: IPO Document Sketchy For 8point3 Energy Partners LP


8point3 Energy Partners LP's initial public offering document filed Tuesday is too sketchy for predictions about its cash flow, according to an analyst.

The joint venture formed by SunPower Corporation (NASDAQ: SPWR) and First Solar, Inc. (NASDAQ: FSLR), is set up as a YieldCo.

Raymond James' Pavel Molchanov noted that the new company will have assets initially of about 432 million megawatts, or little more than half the size of the comparable TerraForm Power Inc (NASDAQ: TERP) at the time of its spinoff last year from Sunedison Inc (NYSE: SUNE).

Despite information about the assets in Tuesday's filing, "all megawatts are not the same," according to Molchanov, who said cash flow estimates will require further projections from the company.

Molchanov appeared skeptical of the company's 50-50 management structure: SunPower's Charles D. Boynton will initially serving as chief executive, while First Solar will name a replacement after two years.

"It's like a Duke/UNC alliance" said Molchanov, referring to the college sports rivalry. "It doesn't have a direct precedent in the solar space."

Molchanov noted that although the new company, named for the 8.3 minutes required for light to travel from the Sun to Earth, is organized under state laws as a limited partnership, it will be treated as a corporation for tax purposes.

The company's net operating loss carry-forwards will offset future income taxes, but Molchanov said its offering document doesn't say for how long.

Latest Ratings for SPWR

Apr 2019AssumesNeutral
Jan 2019Initiates Coverage OnUnderweight
Oct 2018MaintainsNeutralNeutral

View More Analyst Ratings for SPWR
View the Latest Analyst Ratings

Posted-In: 8point3 Energy Partners LP Pavel Molchanov Raymond JamesAnalyst Color News IPOs Analyst Ratings


Related Articles (FSLR + SPWR)

View Comments and Join the Discussion!

Latest Ratings

View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Why Would Apple Switch Chip Suppliers?

GasBuddy: It's All In The (Price) Spread