Needham & Company Starts SolarCity (SCTY) at Buy, $17 PT

January 7, 2013 8:49 AM EST
Get Alerts SCTY Hot Sheet
Price: $20.34 --0%

Rating Summary:
    4 Buy, 16 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company initiates coverage on SolarCity (NASDAQ: SCTY) with a Buy. PT $17.00.

The firm comments, "SolarCity is a leading provider of distributed solar energy to residential and commercial customers. By structuring solar leases at lower rates than retail electricity, the company has rapidly grown to become the largest player in the retail solar market. While its model has many moving parts, we believe that the positive factors enabling the significant growth of solar leasing will be sustained at least over the next 2-3 years, allowing SCTY to continue to grow its business and ownership share of solar assets. While GAAP financials do not fully reflect SCTY’s business model and financial performance, in our opinion, operating metrics provided by the company give us enough confidence on the growth trajectory. We believe SCTY fits investors looking for: 1) a high level of growth; 2) a way to play the downstream portion of the solar value chain; and 3) ownership of solar assets through public equity. Despite the recent run-up in share price, we recommend longer-term investors looking to participate in the strong growth of the U.S. residential solar sector buy the stock."

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

Shares of SolarCity closed at $14.40 yesterday.

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