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Analysts Think SolarCity Investors Are Being Too Dramatic

Analysts Think SolarCity Investors Are Being Too Dramatic
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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

Nov 2016Axiom CapitalDowngradesHoldSell
Oct 2016Axiom CapitalUpgradesSellHold
Aug 2016Raymond JamesDowngradesStrong BuyMarket Perform

View More Analyst Ratings for SCTY
View the Latest Analyst Ratings

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