RBC Capital Cuts Price Target on SunEdison (SUNE) as it Prepares for 'Perfect Storm'
RBC Capital maintained an Outperform rating on SunEdison (NYSE: SUNE), and cut the price target to $24.00 (from $36.00), as the company prepares to weather a "perfect Storm". Analyst Mahesh Sanganeria said that multiple events including the sharp decline in crude price, risk aversion from MLP investors, all time record equity paper offering in yieldco space, aggressive acquisitions, and guidance cut by a couple of yieldcos all conspired to drive an extreme sell off in SUNE stock.
Sanganeria commented, "While the stock at its current valuation is discounting the end of the Yieldco business model, we believe that management has a nice cushion of cash and several options to ride through this market dislocation until cost of raising equity for Yieldcos normalizes. We expect the stock to recover steadily as management actions restore investor confidence."
For an analyst ratings summary and ratings history on SunEdison click here. For more ratings news on SunEdison click here.
Shares of SunEdison closed at $14.25 yesterday.