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Actionable news in SCTY: SolarCity Corporation,

Merrill Lynch Reiterates Mixed Ratings on SolarCity Corp (SCTY) and Petroleo Brasileiro SA Petrobras (ADR) (PBR)


Analysts from Merrill Lynch have recently shed some light on U.S. solar leader SolarCity Corp (NASDAQ:SCTY), and Brazil’s state-run oil maker Petroleo Brasileiro SA Petrobras (ADR) (NYSE:PBR). While SolarCity holds a bullish outlook due to its promising first quarter results, Petroleo Brasileiro consensus remains neutral in light of recent current events involving potentially higher oil prices and changing conditions in Brazil.


SolarCity has received bullish outlooks in light of the company’s recent financing announcements. Merrill Lynch analyst, Krish Sankar has reiterated a Buy rating on the stock with a $40 price target.

SolarCity’s recent financing documents have shown strong progress, including a $150 million commercial solar and storage aggregation facility. Further, the documents include a $188 million tax equity fund. Both of these findings are positive indicators of the company’s ability to deliver on its 2016 plan, according to the analyst. Sankar mentions, “We estimate that the company currently has the tax equity and non-recourse debt capacity to finance installations through early 3Q16.”

In spite of these positive indications, the analyst notes that there is still much work to do in the long term. He explains, “We estimate that SolarCity needs to raise roughly $1.9B in incremental financing to deliver CY2016 guidance of 1,250MW. This includes about $1.2B in remaining tax equity capacity, and roughly $700M from additional sources.” The analyst elaborates further, “Our estimate for total remaining financing necessary includes consideration of roughly $150M of current non-recourse debt due in 2016. In our view, the balance of proceeds net of tax...