SolarCity's (SCTY) Kitchen Sink Quarter – Roth Capital
Philip Shen from Roth Capital Partners, thinks SolarCity (NASDAQ: SCTY) printed its kitchen sink quarter and maintained his Buy rating while reducing his price target. He believes the “competitive dynamics have shifted in SCTY's favor given the challenges among its peers” and he expects the company to gain share for two reasons:
1) Most of the east coast markets are healthy
2) The company cracked the code on small commercial last quarter and which should mean more profitable volumes.
The Big Miss: SCTY installed 256MW in Q3 but only deployed 205MW. W. Q3 bookings of 345MW were down 13% vs. Q2. SCTY cut its full-year 2015 installation guidance to 878-898MW vs. prior guidance of 920-1,000MW a 7% reduction. The company introduced a much weaker-than-expected 2016 installation guide of 1.25GW vs. market expectations of 1.5GW, a 17% miss.
Shen reduced his price target to $55 from $70 to reflect both slower than expected growth and a higher discount rate. The Buy rating was maintained.
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 $38.07 yesterday.