Baird Recommends Buying SolarCity (SCTY) as a Trade, Expects Tesla (TSLA) Deal to Close
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Kallo commented, "We like SCTY as a short-term trade as the spread between SCTY’s share price and expected TSLA acquisition price is substantial, and we expect the deal to close. Under the proposed merger, SCTY shareholders would receive 0.11 TSLA shares per SCTY share, equivalent to ~$23 based on TSLA’s current price, which represents potential upside of >15% from current levels. We like SCTY as a short-term trade and we expect the stock to catch up to its deal price as the shareholder vote nears."
He maintained a Neutral rating and price target of $25 on SCTY.
Shares of SolarCity closed at $18.71 yesterday.
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Related EntitiesRobert W Baird, Tesla, Definitive Agreement, Ben Kallo
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