SolarCity reported a Q4 loss of $US0.46/share and revenue of $US47.3 million on Tuesday afternoon. Both surpassed consensus expectations.
But the stock is down more than 1% this morning after the firm guided to lower and warned on narrower margins.
Citing that, as well as increased operating expenses, Goldman’s clean tech team is ratcheting down its 12-month price target to $US85 from $US88.
The stock is currently trading at $US77.
The analysts are reaffirming their buy rating, and they remain upbeat on the industry as a whole.
“We remain bullish on the overall growth momentum in US solar rooftop installations, and see SolarCity’s scale — particularly in geographic breadth and access to capital (e.g. ABS [asset-backed securities — ed.) — resulting in further share gains as well as positive cash flow in 2014.”
Also this morning, Deutsche Bank’s Vishal Shah reiterated his buy rating and $US90 price target.