Needham & Company Sees SolarCity (SCTY)/Tesla (TSLA) 'Getting Done'

Needham & Company analyst Y. Edwin Mok weighed in on SolarCity (NASDAQ: SCTY) after the company and Tesla (NASDAQ: TSLA) announced a finalized merger agreement. The analyst sees the deal getting done.

Mok commented, "We believe SCTY shareholders are likely to approve the deal and we are increasingly confident that the deal will win Tesla's shareholders' approval. We expect the company to move the majority of SolarCity's business to direct cash/loan sales, which could generate up to ~$1/W of gross profit on a residential solar installation, or ultimately as much as $1 billion on 1GW of installation. Combined with a more aggressive push to reduce operating expenses, we believe the business could turn profitable, potentially in the next 12-24 months."

The firm maintained a Hold rating on SCTY. TSLA is not rated.

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 $26.70 yesterday.

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