Buy SunEdison (SUNE) YieldCos Following Management Change - Avondale (TERP) (GLBL)

Avondale Partners analyst Michael Morosi said they would be aggressive buyers of SunEdison (NYSE: SUNE)-sponsored YieldCos following the company's announcement of management changes at TerraForm Power (NASDAQ: TERP) and TerraForm Global (NASDAQ: GLBL).

"We view this as a crucial first step in acknowledging strategy missteps that have placed the entire complex in a position of financial stress; the operators are taking back the reigns from the bankers," Morosi commented. "Further, we believe SUNE has the ability to find an offtaker for the operating and development assets the company is acquiring in the VSLR transaction, which will meaningfully reduce ongoing financing risk to TERP. Both TERP and GLBL trade at material discounts relative to our run-off valuations of ~$15 and $7, respectively."

The firm maintained the following ratings:

TerraForm Global (NASDAQ: GLBL) Market Outperform price target $11

SunEdison (NYSE: SUNE) Market Perform price target of $6.00

TerraForm Power (NASDAQ: TERP) Market Outperform price target $27.

For an analyst ratings summary and ratings history on SunEdison click here. For more ratings news on SunEdison click here.

Shares of SunEdison closed at $2.82 yesterday.

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