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Sky Solar Fundamental Update Before Earnings

|Includes: CAFD, SEDG, Sky Solar Holdings (SKYS)
Sky Solar Holdings (NASDAQ:SKYS) is expected to reports earnings tomorrow morning before the market opens. SKYS' 6-month stock price performance compared to peers 8Point3 Energy Partners (NASDAQ:CAFD) and SolarEdge Technologies (NASDAQ:SEDG):


The last two quarters the company had negative earnings surprises causing both Roth Capital Partners and Oppenheimer to drop estimates. However, Roth continues to rate SKYS a "buy" and Oppenheimer an "outperform" as of early April. Long-term consensus estimates for SKYS:


This compares to 5-yr projected growth of SKYS peers:

Using the above consensus projections in the 5-yr DCF analysis, a fair value of ~$3.80 is calculated using a 0% terminal growth rate and a 9.5% WACC. However, let's see whether SKYS beats or misses on tomorrow's announcement and the resulting forecast changes.