Goldman Sachs Reiterates on Solid Execution Offset by Higher Bar of Expectations

In a report published Thursday, Goldman Sachs analyst Brian Lee reiterated a Neutral rating and $65.00 price target on SolarCity Corp. (NASDAQ: SCTY).

In the report, Goldman Sachs noted, “SolarCity reported solid 3Q13 results, highlighted by higher retained value per watt and lower costs. 3Q13 MWs deployed were in line at 78MW, while lease/system revenue of $25mn/$24mn beat our $23mn/$18mn view, leading to EPS of ($0.43), ahead of GS/consensus of ($0.51)/($0.44). For 4Q13, SolarCity maintained 101MW guidance, with lease revenue down to $22-$24mn on seasonality, system sales of $18-$22mn, and non-GAAP EPS of ($0.55)-($0.65) vs. GS/consensus of ($0.63)/($0.47). We revise our 2013E-15E EPS to ($1.85)/($2.36)/($2.87) on lower lease revenue and system gross margins, partially offset by lower opex. Our $65 price target is unchanged.”

SolarCity Corp. closed on Wednesday at $59.65.