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Credit Suisse and Roth downgrade SolarCity (SCTY -2.5%) following its mixed Q1 results and 2013...

May 14, 2013 12:25 PM ETTesla, Inc. (TSLA) StockTSLABy: Eric Jhonsa, SA News Editor2 Comments
Credit Suisse and Roth downgrade SolarCity (SCTY -2.5%) following its mixed Q1 results and 2013 guidance reiteration. Nonetheless, shares are giving back less than 1/9 of yesterday's huge gains. Roth, cutting shares to Neutral, cites a 350% post-IPO gain, 10% system-funding costs, and a potentially unsustainable 2.9% pricing "escalator" for electricity contracts as reasons to be concerned. Though SolarCity's Q2 revenue guidance is well below consensus, deployments are expected to grow to 48MW-53MW from Q1's 46MW. On the earnings call, COO Peter Rive stated SolarCity remains "delivery constrained," and is scaling its residential ops in response.

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