By Jeff Siegel
While solar bears and short-mongers celebrated the 8% dip in SolarCity (NASDAQ:SCTY) yesterday, opportunists are sniffing around for another buying opportunity. Especially those who didn’t take my advice to load up after the stock fell below $50 back in March. What a bargain that was!
In any event, SCTY took it on the chin yesterday, and I suspect there will continue to be some ebbs and flows in the near-term. Long-term, however, SCTY remains a solid play on the growth of solar in the United States.
It’s also worth noting that SCTY has just unveiled a new solar mounting product called ZS Peak. It basically allows installers to install systems on flat roofs in half the time it takes today. And according to reps from SolarCity, this new product can increase generation capacity on flat roof buildings by 20 to 50 percent per building.
ZS Peak makes it possible for far more businesses, schools and other organizations to install solar power on their buildings and immediately pay less for solar electricity than they pay for utility power, and will significantly expand the addressable market for commercial solar.
It’s this kind of innovation that continues to put SolarCity ahead of the curve, and it’s also one of the reasons I remain bullish on the stock.
My very conservative price target on SCTY for 2014 is $75. Other price targets include the following:
- Goldman Sachs: $85
- Deutsche Bank: $90
- Credit Suisse: $97
Full Disclosure: I currently own shares of SCTY.
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