SolarCity Corp. (NASDAQ: SCTY) has enjoyed much of the gains seen in the solar sector, and it is a company tied to the great Elon Musk. One problem that the company faces is that its profitability expectations are way out, and investors have tried to look past that. Now a research report from Credit Suisse has an almost unbelievable upside target, but we would warn that this huge upside target is not the firm’s official price target.

Credit Suisse maintained its Outperform rating on SolarCity. Its price target stands at $75, versus a $60.50 close. The rating shows that investors are not seeing the forest for the trees, as the second securitization shows a value creation potential.

The call is after SolarCity announced the pricing of $70.2 million in asset-backed notes. This came at 4.59%, versus the first securitization of $54.4 million at 4.80% last November. Credit Suisse’s report said:

The stock underperformed throughout the day, declining 5.1% compared to ~3% for the solar space and S&P’s -0.1%. We believe many are focused on the less important structure details, including a shorter duration and sub-$100m offering. In our view, the offering and newly disclosed details raise our conviction that SolarCity can continue to generate value with limited invested capital and a low cost of financing.

Here is where the report really stands out: “We continue to see a favorable risk/reward profile with a downside of case of ~$45/share and blue-sky value of ~$175/share.” Again, the official target is $75.

When you see numbers like this on a long-term value call under the best scenario, they really stand out.

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