- SolarCity (SCTY) +3.8% premarket after Deutsche Bank initiates coverage with a Buy rating and $90 price target, as analyst Vishal Shah expects SCTY's install base to double through 2015 and 2016.
- The firm believes SCTY is poised to benefit from accelerating growth of distributed generation as retail electricity customers switch to solar and an increasing number of U.S. states achieve grid parity by 2016.
- Shah estimates SCTY's market penetration is ~0.2% in existing markets and thinks cumulative MW deployed can reach at least 3 GW by 2016, which would still imply only ~1% market penetration; he says his 2016 estimates are likely conservative as SCTY is targeting 1M customers, implying ~6 GW deployed by mid-2018.
SolarCity +3.8% premarket as Deutsche Bank starts at Buy
Jan 16 2014, 08:08 ET