Baird’s research note on SolarCity Corp stock after 2Q earnings report
Business Finance News reviews Baird’s research note on SolarCity Corp stock after 2Q earnings report.
SolarCity Corp. (NASDAQ:SCTY) published its second quarter earnings report for the fiscal year 2015 on July 29, beating the Street massively on revenues by $12.6 million, recording $102.8 million; in turn, registering colossal growth of well over 67%. Despite the beat, shares for SolarCity are treading on a downwards trajectory, falling by 0.93% as at 11:21 AM EDT.
However, it is interesting to note that regardless of the falling share price, Baird analyst Ben Kallo has increased the 12-month price target estimate to $73 from the previous estimate of $71. We believe that the stance by Mr. Kallo is explained, as falling stock price presents an excellent Buy opportunity, as future growth is anticipated with consumer bookings expected to increase.
In the research note, we notice that SolarCity bookings have increased by 81% Year-over-Year (YoY) in the second quarter; we believe this trend to carry on in the future as the masses are educated on the upside of using renewable energy; this coupled with the increased investment will surely take the stock further.
Apart from what Mr. Kallo believes to be traction points for SolarCity’s future growth, we believe that financing facility available to its customers is a great selling point to attract a greater consumer base.
Stock Price Movement
SolarCity stock is currently trading at $57.78, down by 0.47% as at 11:48 AM EDT, the stock opened at $59.76. The 12-month consensus price target of $84 per share, which registers a massive potential upside of 45.3% on the current share price, further supports our claim of lower share price projecting an excellent buy opportunity.
We notice the same bullish stance as analysts on the Street are leaning greatly towards a Buy rating; 12 out of 15 analysts polled by Bloomberg suggest a Buy rating, whereas just two analysts rate the stock as a Hold and merely one analyst tags the stock as a Sell.
I am David, economist, originally from Britain, and studied in Germany and Canada. I am now living in the United States. I have a house in Ontario, but I actually never go. I wrote some books about sovereign debt, and mortgage loans. I am currently retired and dedicate most of my time to fishing. There were many topics in personal finances that have currently changed and other that I have never published before. So now in Business Finance, I found the opportunity to do so. Please let me know in the comments section which are your thoughts. Thank you and have a happy reading.