Vivint Solar Inc (NYSE:VSLR) shares rose 42.59% to $3.75 on Friday following several upgrades from stock analysts.
In particular, Vivint Solar Inc (NYSE:VSLR) shares were upgraded by analysts at Deutsche Bank from a hold to a buy rating, citing a price target of $7.50 per share from the previous $3.50. According to their research, the company’s financials are improving due to tax equity funding from an unnamed investor.
The company was able to secure a new $75 million tax equity fund early last week, enabling the company to install more than 45 megawatts of residential solar energy systems. “We are very pleased to announce this new tax equity partnership,” said Thomas Plagemann, Executive Vice President and Head of Capital Markets for Vivint Solar. “This investment fund demonstrates our continued ability to raise critical financing and the confidence of new investors to partner with Vivint Solar as a leading provider of residential solar in the United States.”
This marks the company’s first investment fund with the new investor, allowing it to design, procure, and build low-cost, clean solar energy systems for more than 7,200 new residential customers. Vivint Solar Inc (NYSE:VSLR) currently operates in Arizona, California, Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, New Mexico, New York, Pennsylvania, South Carolina, and Utah.
Vivint Solar Inc (NYSE:VSLR) primarily offers distributed solar energy, which is electricity generated by a solar energy system installed at or near customers’ locations to residential customers based on over 20-year contracts. It operates in the residential segment, as well as the commercial and industrial market. The company makes use of investment funds and owns an interest in the solar systems it installs, which then allows it and the other fund investors to benefit from various local, state and federal incentives.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.
