Baird upgrades SolarCity to Outperform, shares +6% premarket

|About: SolarCity Corp. (SCTY)|By:, SA News Editor

Baird's Ben Kallo declares SolarCity's (SCTY) effort to sell solar asset-backed securities makes it "one of the most innovative public solar financing companies."

He's lowering the discount rate he applies to SolarCity's projects to account for the relatively low 4.8% interest rate attached to the company's asset-backed debt, and expects shares will "react favorably as investors recalibrate their expectations."

Shares have now recouped a majority of the losses they saw following SolarCity's Nov. 6 Q3 report.