Buy Vivint Solar (VSLR) Weakness, Says Goldman Sachs

Goldman Sachs maintained a Buy rating on Vivint Solar (NYSE: VSLR) with a modified price target of $20.00 (from $22.00). The stock declined after reporting Q3 results and guidance. Analyst Brian Lee thinks investors should buy weakness.

"While 3Q volumes were solid and above expectation, we expect VSLR to pull back on a disappointing guide down for 4Q. That said, we would be buyers on weakness as Vivint’s growth opportunity is intact, in our view, while new market traction and cost control appear ahead of schedule," said Lee.

"Growth intact, but cadence shifting a bit… 3Q14 installs of 49MW were a clean beat, up 31% qoq, with the 4Q guide of 45-47MW down qoq but still implying an in line 150MW+ target for 2014. Bookings were solid at 62MW as management cited no change to its growth outlook heading into 2015," continued the analyst.

"…as mix shift driving higher seasonality. We believe Vivint’s better than expected traction in the Northeast (~60% of 2H14 volume) is evidenced by its emerging #1 share status in key states such as NY, NJ, and MA – though a near-term offset appears to be higher-than-expected seasonality," he added.

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

Shares of Vivint Solar closed at $14.74 yesterday.

You May Also Be Interested In

• Freedom Broker Upgrades PrimeEnergy Resource (PNRG) to Hold
• Info Edge India (INFOE:IN) PT Raised to INR1,260 at Macquarie
• JPMorgan Upgrades Hyundai Marine and Fire Insurance (001450:KS) to Neutral