SolarCity Surges on Higher Rooftop Installation ForecastJustin Doom
SolarCity Corp., the biggest U.S. solar power provider, advanced the most in six months after raising its installation forecast.
SolarCity gained 12 percent to $53.60 at the close in New York, the most since Oct. 16.
The company, based in San Mateo, California, expects to install 500 megawatts to 550 megawatts of rooftop systems this year, a 25-megawatt boost over its March forecast, according to a statement yesterday.
The company installed 82 megawatts in the first quarter, 78 percent more than a year earlier. It expects to add as much as 1 gigawatt in 2015.
“SolarCity aims to deploy more in 2015 than the size of the entire U.S. PV market -- residential, commercial, utility -- in 2010,” about 878 megawatts, Pavel Molchanov, an analyst at Raymond James & Associates Inc. in Houston, said today in a note to investors. He rates the shares the equivalent of a buy with a 12-month price target of $75.
SolarCity installs rooftop solar panels at little to no upfront cost. Customers sign long-term contracts to buy the electricity.