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

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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Comments (2)
  • gdavidson1731
    , contributor
    Comments (159) | Send Message
     
    Didn't these same guys said the same thing about Tesla some time back?
    14 May 2013, 12:29 PM Reply Like
  • EVmarc
    , contributor
    Comment (1) | Send Message
     
    how are the 2.9% pricing "escalator" for electricity contracts
    potentially unsustainable?
    15 May 2013, 08:42 AM Reply Like
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