Roth Capital Trims Ests on Sky Solar (SKYS) Following Q2 Results; Sees Close to Securing Capital

Roth Capital affirms Sky Solar Holdings (Nasdaq: SKYS) with a Buy rating and $12 price target following the company's Q2 results reported earlier Friday.

SKYS posted Q2 EPS of $0.02 with revenue of $12.6 million, versus analyst estimates calling for a loss of $0.01 per share and revenue of $12.9 million.

Analyst Philip Shen commented, SKYS posted an inline-ish Q2 and did not affirm its annual outlook for 200-220MW deployed in 2015. Despite this, the stock rallied 16% on the day. We believe the company may be close to securing the required capital including project finance to execute on its Japanese and LATAM pipeline. We would look for an incremental update over the near-term as a positive catalyst for the stock.

Estimate changes: We lower our 2015 deployment forecast to 106MW from 210MW as a result of moving the majority of SKYS's LATAM projects into 2016. We continue to see 90MW of Japanese deployments in 2015, but push project connections toward the end of the year. We lower our 2015 revenue forecast to $56mn vs. prior consensus of $60mn and prior ROTHe of $65mn as a result of lower average connected capacity in the year. We maintain our GM forecast of 66% (ROTHe was consensus) and lower our EPS forecast to 14c vs. prior consensus of 26c and prior ROTHe of 38c.

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

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