Vivint Solar Inc (NYSE:VSLR) was upgraded by analysts at Deutsche Bank from a “hold” rating to a “buy” rating in a research report issued on Friday. The brokerage presently has a $7.50 price target on the stock, up from their prior price target of $3.50. Deutsche Bank’s price target would suggest a potential upside of 185.17% from the stock’s current price.
The analysts wrote, “With the tax equity environment for VSLR improving, we believe the company remains in a strong position to achieve its 2016 installation targets. Additionally, after a slow seasonal start, fundamentals in the US resi market are improving,” analyst Vishal Shah wrote in a note.Shah said Vivint has 514MW of operating assets in the current portfolio, which he believes are worth about $5/share (assuming 8 percent discount rate). This implies that at current levels, shares are assuming the devco is worth ($2.50)/share.Related Link: Gordon Johnson On Trina Solar: Time To Press The Shorts”Even if we do not include renewals, VSLR’s operating assets are worth ~$3.50/share which would mean ~($0.90) value for devco,” Shah noted.The analyst highlighted that the most recent tax equity round enables the company sufficient tax equity funds through Aug ’16 time frame. Shah said company needs $2.60–2.80/W of project financing, of which $1.50–1.70/W is in the form of tax equity financing. The analyst noted that additional financing announcements are likely as the company had said it was working on $200 million worth of tax equity transactions. “We believe the amount of capital needed to achieve 2016 objectives is easily achievable and more importantly, the shares are clearly not discounting this amount of capital raise at current valuation levels,”
A number of institutional investors recently added to or reduced their stakes in the company. Sand Grove Capital Management LLP bought a new position in Vivint Solar during the fourth quarter worth $15,862,000. Luxor Capital Group LP bought a new position in Vivint Solar during the fourth quarter worth $14,659,000. Renaissance Technologies LLC bought a new position in Vivint Solar during the first quarter worth $1,308,000. Royal Bank of Canada raised its position in Vivint Solar by 325,987.0% in the first quarter. Royal Bank of Canada now owns 150,000 shares of the company’s stock worth $398,000 after buying an additional 149,954 shares during the period. Finally, State Street Corp raised its position in Vivint Solar by 21.2% in the first quarter. State Street Corp now owns 308,901 shares of the company’s stock worth $817,000 after buying an additional 54,085 shares during the period.
Vivint Solar (NYSE:VSLR) last issued its quarterly earnings data on Monday, May 9th. The company reported ($0.65) EPS for the quarter, missing the consensus estimate of ($0.61) by $0.04. The business earned $17.20 million during the quarter, compared to the consensus estimate of $17.60 million. The company’s revenue for the quarter was up 81.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.57) earnings per share. Equities research analysts predict that Vivint Solar will post ($2.51) EPS for the current year.
Other analysts have also issued reports about the company. Credit Suisse reissued a “hold” rating on shares of Vivint Solar in a report on Sunday, March 20th. Bank of America reissued a “sell” rating and issued a $2.00 price objective on shares of Vivint Solar in a report on Monday, May 2nd. Avondale Partners reissued a “buy” rating and issued a $8.00 price objective on shares of Vivint Solar in a report on Saturday, April 23rd. Goldman Sachs reissued a “sell” rating and issued a $3.00 price objective on shares of Vivint Solar in a report on Thursday, March 17th. Finally, Zacks Investment Research lowered Vivint Solar from a “buy” rating to a “hold” rating in a report on Wednesday, May 18th. Three equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and an average price target of $7.00.
Vivint Solar, Inc is a provider of distributed solar energy, which is electricity generated by a solar energy system installed at customers’ locations. Through its investment funds, the Company owns an interest in the solar energy systems it installs and ownership of the solar energy systems allows it and the other fund investors to benefit from various local, state and federal incentives.
