Vivint Solar's Q1 Growth Execution Reaffirms Confidence, BofA Says

Vivint Solar Inc (NYSE: VSLR) delivered another quarter of healthy growth, which instills added confidence in the company achieving its FY2019 megawatt growth guidance of 15%, according to Bank of America.

The Analyst

BofA’s Julien Dumoulin-Smith maintained a Buy rating on Vivint Solar, raising the price target from $11.50 to $12.50.

The Thesis

Vivint Solar deployed 45.6MW in the first quarter, slightly above the high end of the guidance range. The company announced a better-than-expected NPV of 99 cents per W, and management reiterated their expectations of achieving an FY2019 NPV in excess of $1 per W, Dumoulin-Smith wrote in the note.

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Vivint Solar announced more retail partnerships with Costco Wholesale Corporation (NASDAQ: COST) and BJs Wholesale Club Holdings Inc (NYSE: BJ), which supports growth beyond 2020.

The increased confidence in the 15% growth guidance for 2019 and expectations of this accelerating beyond 2020, there could be a continued inflection sentiment through the rest of this year, the analyst said.

Price Action

Shares of Vivint Solar surged 9 percent to $7.26 at time of publication Tuesday.