SolarCity +2.7% premarket as Baird calls top pick, raises target to $81

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

SolarCity (SCTY) +2.7% premarket as Baird analyst Ben Kallo calls it his favorite pick for 2014 and would be a buyer of the stock on any weakness from the Jan. 14 lock-up expiration of ~51M shares.

Kallo says SCTY is levered to the rapidly growing U.S. residential and commercial solar markets, as he raises the stock's price target to $81 from $71.

Kallo thinks SCTY is on track to meets its 2014 guidance of 475 MW-525 MW after its recent expansion of 10 operating centers in northern California.

In North America, the firm believes the residential and commercial solar markets will grow ~20% and 13.8% Y/Y, respectively, as demand accelerates.