Recent Solar Project Wins are Big News for PowerSecure (POWR); Roth Reiterates at 'Buy'

Roth reaffirms PowerSecure Int'l (NYSE: POWR) with a Buy rating and $16 price target following news last Friday that the company was awarded $100mn in new solar projects, including an $85mn project with Georgia Power Company.

Analyst Matt Koranda provided the following summary: In our view, this represents a nice win for POWR given that it nearly doubles POWR’s existing $120mn in solar projects that the company is currently executing against in 2015 and 2016 (we model an even split of $60mn in solar revenue in both 2015 and 2016). While there is risk that an expiration of the ITC could create a headwind for the solar business beyond 2016, we believe the company remains well positioned with its focus on utility-scale and large commercial solar projects that continue to be driven by state-mandated renewable portfolio standards. The win also validates, in our view, POWR’s unique approach to the solar market as POWR’s utility relationships (brought about through its core DG and utility infrastructure segments) appear to be an important factor in this new business win.

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

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