Deutsche likes SolarCity's offering, calls it a positive for SunPower

Deutsche's Vishal Shah predicts SolarCity's (SCTY +4%) $54.4M sale of solar asset-backed notes could open the door for SunPower (SPWR +4.3%) and others to do similar deals. The latter company has joined the former, which has already received a Baird upgrade in response to the offering, in rallying.

Shah states the 4.8% interest rate carried by SolarCity's notes is below the 6.5% rate he expected, and well below tax equity financing rates (can be as high as 15%). "Bottom line, the Solarcity ABS transaction improves overall sector profitability and sets the stage for a lot stronger growth of the US solar market over the next 12-18 months."

Also: SolarCity is partnering with BMW to offer solar electricity rate discounts to buyers of BMW's i Series hybrid/electric cars within SolarCity's 14-state service area.

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Comments (1)
  • leebailey85
    , contributor
    Comments (86) | Send Message
    SPWR is very cheap compared to SCTY. I see shares hitting $65 in 2014. Long SPWR
    14 Nov 2013, 03:58 PM Reply Like
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