- Goldman, Deutsche, Credit Suisse, and BofA/Merrill have launched coverage on Vivint Solar (VSLR +3.2%) with bullish ratings, while Citi has launched at Neutral.
- "In our view, VSLR is positioned to outgrow peers in the residential solar industry with a unique sales model and low cost structure," writes CS' Patrick Jobin. "The company is vertically integrated from sales, installation, and long-term ownership and is unique with its exclusive use of neighborhood direct door-to-door sales, enabling low customer acquisition costs and clustering."
- Deutsche's Vishal Shah: "We expect the company’s differentiated sales model and flexible supply chain will enable 100% YoY growth of installations through 2016. Vivint’s door-to-door sales model should enable lower customer acquisition costs and we expect the introduction of additional innovative financing structures to act as catalysts."
- Citi's Shahriar Pourreza, on the other hand, sees competition from utilities and an expected decline in the solar investment tax credit to 10% by the end of 2016 as risks. He adds "there is an increased perception of risk associated with [Vivint Solar's] business model due to potential competition from fixed charges, financing bottlenecks, and low barriers to entry."
- Shares remain nearly $2 below their $16 Oct. 1 IPO price.