Sunedison held a business update call on Wednesday during which the company reduced its 2016 guidance by 20 percent. However, Sunedison’s share price spiked as much as 16 percent following the call, as the market identified several positive takeaways.
One of the listeners that liked what he heard on the call was ROTH Capital Partners analyst Philip Shen. In a follow-up report, Shen listed the positives and negatives from the call for Sunedison and explained why ROTH is maintaining its bullish outlook for solar stocks.
Positives
In his report, Shen identified the following four positive takeaways from Sunedison’s call:
- 1. The company has no plans to drop assets down to TerraForm Power Inc TERP 1.01% or TerraForm Global Inc GLBL 4.46% in 2016, eliminating the need for potential equity raises.
- 2. The company is transitioning more toward third-party sales than expected.
- 3. Asset prices have remained solid.
- 4. The company’s $5 billion of warehouse facilities indicate that there is no need for near-term capital.
Negatives
One of the biggest negatives that Shen heard on the call was…
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