Since the beginning of the year, shares of SolarCity Corp. (NASDAQ: SCTY) have lost about 47% of their value. The drop was likely precipitated by proposed — and ultimately adopted — rules in Nevada imposing higher net metered rates on homeowners who had installed or who would install rooftop solar panels.
When SolarCity reports earnings after markets close Tuesday, analysts are looking for a quarterly loss of $2.59 and revenues of $105.62 million. In the same period last year, the company reported a net loss of $1.33 and revenues of $71.81 million. For the full year, analysts are estimated a net loss of $8.03 and revenues of $389.68 million, compared with a 2014 net loss of $3.88 and revenues of $255.03 million.
The company’s prospects did get some positive knock-on effect when the federal budget that was passed in December included continued tax breaks for the alternative energy industry. But the Nevada decision, coupled with uncertainty about a public utilities commission ruling on net metering in California, added too much weight for the company to overcome.
Looking at some analyst calls since the beginning of 2016, we note that most are positive, but investors have not bought into the story:
- Goldman Sachs raised its price target from $42 to $59 and its most recent rating was Neutral.
- Bernstein reiterated a Buy rating and maintained a $62 price target.
- Axiom Securities rates the stock a Sell.
- Barclays initiated coverage with an Overweight rating and a price target of $49.
- Roth Capital maintained a Buy rating and a price target of $65.
- Avondale Partners reiterated its Market Outperform rating and its most recent price target is $65.
- Stifel maintained a Buy rating but lowered its price target from $86 to $80.
- Needham reiterated a Hold rating.
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