Elon Musk, CEO of Tesla, Inc. (NASDAQ: TSLA) knew early on that solar and energy storage was a hot ticket. He once said in an interview that the Tesla Energy sector — starting from a small base — would be the quickest growth segment of his company as it pulled roughly to within the same size as Tesla’s automotive business. On a percentage basis from a small base, Tesla Energy would grow even faster, he said. Solar Integrated Roofing Corp. (OTC PINK: SIRC) is now projected by Goldman Small Cap Research to be the fastest-growing solar company by percentage among its public peers in the 2020-2021 period if it hits its estimates. It could record corporate volume gains by percentage in the cumulative two-year period, higher than any estimated in the publicly-held solar peer group, Goldman asserted in its report.
stockmarketpress.com features specialized coverage of related stocks in the solar, roofing and battery charging energy industry such as Solar Integrated Roofing Corp. (OTC PINK: SIRC), Sunrun, Inc. (NASDAQ: RUN), Blink Charging Co. (NASDAQ: BLNK), Tesla, Inc. (NASDAQ: TSLA), SolarEdge Technologies, Inc. (NASDAQ: SEDG), First Solar, Inc. (NASDAQ: FSLR), SunPowerCorp. (NASDAQ: SPWR), Gibraltar Industries, Inc. (NASDAQ: ROCK) and Canadian Solar Inc. (NASDAQ: CSIQ).
Elon Musk, CEO of Tesla, Inc. (NASDAQ: TSLA), Says Solar And Energy Storage Could Be Fastest-Growing Sector By Percentage Of His Business; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Projected As Fastest Growing By Percentage Vs Solar Peers In FY 2020-2021 Estimated Period
Goldman Small Cap Researchthis weektripled its price target for Solar Integrated Roofing Corp. (OTC PINK: SIRC) to $0.75 for the next three-six months after it blew past the previous price target it set only last month. Goldman in the Update Report also analyzed the estimated performance of SIRC in FY 2020 and FY 2021 against its publicly held solar peers. It said if SIRC hits its estimated volume targets in 2020 and 2021 it would show leading percentage growth on a smaller base.
By comparison, Goldman said that the four companies in the solar peer group would have far larger revenues but would show less percentage growth in the two-year period than smaller base SIRC. Sourcing from company websites and Yahoo Finance statistics, the Goldman Small Cap Research report said the peer group public companies cumulatively would show estimated revenue percentage growth in this 2020-2021 period ranging from 6.7% to 54.9%.
Goldman Tripled Its Stock Price Target To $0.75 for SIRC In New Update Report
Goldman Small Cap Research tripled its price target on Solar Integrated Roofing Corp. (OTC PINK: SIRC) to $0.75 for the next three—six months after SIRC surges past the prior target. Goldman likes the volume drivers for SIRC: the M&A strategy, entry into adjacent sectors, past record performance and partnership/agreement with EV developer of all-electric tractors, which is an applicant for a $500 million USTDA grant. Elon Musk, CEO of Tesla, Inc. (NASDAQ: TSLA), Says Solar And Energy Storage Could Be Fastest-Growing Sector By Percentage Of His Business; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Projected As Quickest Growing By Percentage Vs Solar Peers In FY 2020-2021 Estimated Period.
SIRC “Hitting On All Cylinders”
Goldman in its initial report estimated sales for Solar Integrated Roofing Corp. (OTC PINK: SIRC) at $19.8 million for FY 2021 and $38.5 million In FY 2022. The Goldman report said that “SIRC is currently hitting on all cylinders,” the current analysis finds, adding that SIRC is expanding its solar footprint with organic and acquisition growth.
The Company has shown dramatic growth from aggressive M&A activity and organic growth. Rob Goldman, Senior Analyst, cited SIRC’s Q3 FY 2021 volume jump of 130% YOY to $5.2 million in sales. It also noted SIRC’s move into new adjacent clean air categories such as EV charging stations, all-electric tractors and new home solar installations in San Diego — mandated in California — in addition to its solar marketing in Southern California. SIRC reached a new agreement with Solectrac, Inc., an electric tractor developer and manufacturer located in Northern California. The company is now 24% owned by Ideanomics (NASDAQ: IDEX). Solectrac is an applicant for a $500 million USTDA grant.
M&A With Verticals And Cross-Selling Synergies Sets The Stage For More Growth, Goldman Says
Goldman Small Cap Research in its updated report also explained that while SIRC’s discounted valuation today remains below its peer group of companies, the Company’s stock still has a lot to gain in valuation metric. “Thus, we believe that these shares (OTCPK:SIRC) could trade north of $1.00 and beyond in 2021, especially as new companies are brought into the SIRC family,” it concluded.
The Goldman report added: “Based on the Company’s price/sales metrics relative to our price target (2.7x next year’s sales), we have determined that for each new $5 million in acquired business, SIRC’s shares should enjoy a $0.10 per share rise.” It specifically likes SIRC’s entry into the EV residential charging station market. Cross-selling in this market — leveraging the Company’s existing customers — could generate strong volume growth and profitability, it finds.
SIRC’s Multi-Revenue Stream Growth Strategy
David Massey, CEO, is overseeing a multi-revenue stream growth strategy that includes a fast-growth multi-dimensional plan: entering the new home market, certification to install Tesla (NASDAQ: TSLA) solar roofs and its Powerwall line of lithium-ion solar batteries, a new joint venture with Enerev, LLC, possibly leading to a purchase, plus a string of acquisitions of numerous solar and HVAC companies. Massey has also established for the Company a dedicated EV charging station subsidiary.
SIRC itself forecasts a volume of $40 million for FY 2022 — slightly north of the $38.5 million projected for it that year by the new Goldman report. Similarly, Massey of Solar Integrated Roofing Corp. (OTC PINK: SIRC) projects that its fast-track growth will generate revenues of $20 million for the FY ending February 28, 2021, almost precisely the $19.8 million estimated by the initial report.
Cross-Selling Is Key For The Success Of Solar Integrated Roofing Corp. (OTC PINK: SIRC)
SIRC’s revenue growth could be even higher if the Company’s team is able to cross-sell more add ons, such as Tesla's (NASDAQ: TSLA) Powerwall storage battery units and new HVAC installations for new residences. As California’s law now mandates solar energy systems for new residences built in 2020 and beyond, there are many new opportunities for expansion for SIRC. Elon Musk, CEO of Tesla, Inc. (NASDAQ: TSLA), Says Solar And Energy Storage Could Be Fastest-Growing Sector By Percentage Of His Business; Solar Integrated Roofing Corp. (OTC PINK: SIRC) Projected As Quickest Growing By Percentage Vs Solar Peers In 2020-2021 Estimated Period.
New Strategies And Partnerships Present SIRC With Multiple Solar Opportunities
David Massey said of the company’s entry into new home developments alongside several San Diego builders, “In addition to the roofing and solar revenue from each new housing development, we maintain the upside opportunity to sell the end home buyer additional solar or battery storage solutions, creating an exciting new sales pipeline for our growing team.”
SIRC Generates Additional Revenue By Adding Solar Battery Sales
“Our main focus is roofing and solar,” Massey said. However, the company is “able to raise the amount of its (sales) tickets” he said by additionally partnering with Tesla (NASDAQ: TSLA) as a certified installer of that company’s new solar roof system and its solar battery backup Powerwall product. The net result is that SIRC can install a solar roofing system plus solar battery and generate additional revenue. Tesla is now a member of the S&P Index.
Learn more about SIRC at Solar Integrated Roofing Corp. (OTC PINK: SIRC).