Market Overview

Axiom's Gordon Johnson Less Bearish On SolarCity, Upgrades From Sell To Hold

Share:
Axiom's Gordon Johnson Less Bearish On SolarCity, Upgrades From Sell To Hold

Axiom’s Gordon Johnson expressed increased optimism on the solar sector, with expectations of “catalysts of both the fundamental & sentiment variety on the horizon.”

Johnson upgraded the rating on SolarCity Corp (NASDAQ: SCTY) from Sell to Hold.

Reasons For Optimism

The analyst explained that there were four key reasons for the optimism on the solar sector, including the prosed FiT cut by China on July 1, 2017.

Johnson estimates that this cut would “usher in ~25GW of 1H17 Chinese “pull-in” demand”, suggesting that the solar market would by undersupplied at least temporarily, in H1 2017.

Related Link: Finding Some Sun At A Cloudy Time For Solar Stocks, ETFs

Following 32 consecutive weeks of week-over-week multi-wafer declines and 18 straight weeks of week-over-week multi-cell price declines, the prices for both substrates have moved up in the current week, on the back of news of a sharper than anticipated FiT cut by China in 2017.

In addition, Johnson believes that if Hilary Clinton were to win the U.S. Presidential election, it would give a push to solar stocks, given her “robust 140GW solar installation goal.”

The analyst also believes that following the year-to-date underperformance of the Solar TAN Index, there are “catalysts of both the fundamental & sentiment variety on the horizon.”

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Latest Ratings for SCTY

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

View More Analyst Ratings for SCTY
View the Latest Analyst Ratings

Posted-In: Axiom Equity Research Gordon JohnsonAnalyst Color Upgrades Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (SCTY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
UALCFRADowngrades83.0
BRK/BCFRAMaintains235.0
SPNSNeedhamMaintains28.0
WLKBarclaysMaintains64.0
WBBarclaysMaintains48.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
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 vipaccounts@benzinga.com