Shares of Vivint Solar (VSLR) are soaring during Friday morning trading as Deutsche Bank (DE:DBKGn) (DB) upgraded the stock to “buy” from “hold.” During pre-market trading, Vivint Solar stock spiked by 6.26% to $2.80. Deutsche Bank also raised its price target to $7.50 from $3.50 on the Lehi, UT-based solar energy company.
As of 11:36 AM ET, shares of VSLR are up 45.63%.
Deutsche Bank believes that the shares are trading at a discount to valuation and operating assets.
“With the tax equity environment for VSLR improving, we believe the company remains in a strong position to achieve its 2016 installation targets,” the bank wrote in a note to investors, per an article from The Street.
“We believe VSLR's powerco assets are worth about $5/share (assuming 8% discount rate) which would imply that at current levels, shares are assuming the devco is worth ($2.50)/share,” Deutsche Bank added.
Vivint Solar has a Zacks Rank #3 (Hold).
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