SolarCity Corp (SCTY) Gets A $68 PT From JPMorgan

Posted Oct 17, 2013

JPMorgan has given SolarCity (NASDAQ:SCTY) an OVERWEIGHT rating and a price target of $68.  JPMorgan analysts are saying that the stock is a core holding for alternative energy investors. They also said that SolarCity’s shares are undervalued based on retrained value forecast through 2017.

“We view the stock as undervalued based on projected retained value ? the NPV of long-term service contracts, net of upfront funding,” stated JPMorgan analyst Paul Coster.  “Rooftop solar could contribute 3.5% (121GW capacity) of US electricity by 2030, 6% (240GW) by 2050, from a base of under 0.1% today. SolarCity’s 2018 target of 6GW (0.5GW today) looks easily attainable, with 2013 penetration rate at under 0.2% of 41 million home TAM . . .Solar City dominates roof-top solar with ~20% share of installations, and largest installed base of 0.5GW, or 75,000 customers. Competitive advantage originates in nationwide sales and distribution, purchasing power, vertically integrated delivery, and access to low-cost finance.”

Today SolarCity is up 3.26% as of the time that this article was written at $54.09.

Today, we reported that SolarCity will be raising nearly $400 million from a bond and stock sale.  Earlier this month, we also reported that SolarCity has increased their 2013 guidance for new installed capacity to over 278 megawatts.