Market Overview

TerraForm Power Upgraded By Goldman Sachs: 'We See Strong Visibility To Hit Growth Expectations'

Share:
TerraForm Power Upgraded By Goldman Sachs: 'We See Strong Visibility To Hit Growth Expectations'
Related TERP
Mid-Day Market Update: K2M Group Rises On Acquisition News; Tech Data Shares Plunge
Mid-Morning Market Update: Markets Open Lower; Dollar General Profit Beats Views

Goldman Sachs is optimistic on the future of wind and solar power company TerraForm Power Inc. (NASDAQ: TERP) as regulatory and funding risks continue to fade.

The Analyst

Analyst Brian Lee upgraded TerraForm from Sell to Neutral and maintained an $11 price target. 

The Thesis

TerraForm warrants a Neutral rating based on the following factors, Lee said in the upgrade note:

  • Tempered expectations following two quarterly misses.
  • Subsided regulatory risk surrounding the return reduction potential of Spanish assets.
  • A completed equity overhang to fund recent acquisitions.

After two company misses driven by new expenses and issues with asset availability, Lee said he anticipates less risk around estimates with the potential of incremental progress on cost initiatives in 2019.

Regulatory risks tied to TerraForm's Spanish assets have been resolved, the analyst said.

The company's European utility team has outlined new expectations for a cut of regulated returns in Spain, he said.

“We see strong visibility to hit growth expectations under the larger platform including Saeta and a host of existing organic opportunities such as cost savings [and] repowering."

Price Action

TerraForm shares were up 4.17 percent at $11.50 at the time of publication Wednesday.

Related Links:

TerraForm Power's Q2 Print Energizes Oppenheimer

Pattern Energy Vs. TerraForm Power: A Clean Energy Pair Trade From Goldman Sachs

Latest Ratings for TERP

DateFirmActionFromTo
Sep 2018Deutsche BankReinstatesHold
Sep 2018Goldman SachsUpgradesSellNeutral
Aug 2018OppenheimerUpgradesPerformOutperform

View More Analyst Ratings for TERP
View the Latest Analyst Ratings

Posted-In: Brian Lee Funding Goldman Sachs regulatory risksAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (TERP)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
LXFTKeyBancDowngrades0.0
CPAImperial CapitalDowngrades68.0
PRMWImperial CapitalInitiates Coverage On18.0
TGTKeyBancInitiates Coverage On110.0
QCOMMorgan StanleyUpgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
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
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Mid-Afternoon Market Update: MACOM Falls After Stifel Downgrade; Galapagos Shares Climb

Huntington Ingalls Has A Leadership Position In Defense, Buckingham Says In Bullish Initiation