SolarCity Shares Brighten On Analyst Recommendations
Despite the overall hesitancy to invest in the solar industry, SolarCity (SCTY :NASDAQ) is bucking the trend as analysts from Credit Suisse, Goldman Sachs, and Roth Capital Partners have ambitious expectations for the solar installer.
Satya Kumar of Credit Suisse believes low solar panel prices and low interest rates combined with rising electricity prices will help attract new customers. Brian Lee of Goldman Sachs believes the company’s installations will increase from 30 percent to 35 percent each year through 2016. “Clean power below utility rates”, SolarCity’s marketing line, is what Roth Capital’s Philip Shen quoted in his report.
Considering SolarCity is actually in a position to benefit from the drop in price of solar panels, it’s not hard to see why analysts like this company. And combined with the fact that it’s a pure solar installation play, unlike First Solar (FSLR :NASDAQ) and SunPower (SPWR :NASDAQ), SolarCity has the potential to succeed despite the uncertainty that is clouding the industry.
Shares of SolarCity soared 12.5 percent in late afternoon trading.
