SolarCity Corp (NASDAQ:SCTY) finally released the results from its most recently completed quarter, and the losses were not as bad as expected. However, the solar company guided for lower expectations and warned that margins could start to narrow. Because of these two items in SolarCity’s report, Goldman Sachs analysts nudged their price target down slightly from $88 to $85 a share.

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Goldman likes solar industry

Analyst Brian Lee and his team were also concerned about SolarCity Corp (NASDAQ:SCTY)’s increased operating expenses. However, they reaffirmed their Buy rating in their latest report, saying they’re still bullish on the U.S. solar energy industry as a whole.

The analysts also said they continue to like SolarCity Corp (NASDAQ:SCTY)’s scale, especially the number of geographic locations the company is in, and its access to capital, like the asset-backed securities it announced recently. As a result, they think the company’s shares and cash flow have more room to grow this year.

Wall Street disturbed by SolarCity’s guidance

Although SolarCity Corp (NASDAQ:SCTY)’s guidance for earnings per share in the current quarter wasn’t particularly great, Lee and his team said they’re positive on it. They cite management’s confidence that they will hit their installation target of between 475 and 525 megawatts for this year. They note that SolarCity expects to see more than 100 megawatts of residential bookings by the end of the current quarter.

In addition, the Goldman team notes the “flattish” quarter over quarter trends in incremental retailed value. In the fourth quarter, that was around $1.90 per watt, even though SolarCity Corp (NASDAQ:SCTY)spent more on investments and geographic expansion outside of California.

Other analysts weigh in on SolarCity

Of course Goldman Sachs wasn’t the only firm to release updated results after last night’s earnings report. Analyst Vishal Shah of Deutsche Bank reiterated his Buy rating and $90 a share price target on SolarCity Corp (NASDAQ:SCTY) as well. Also Roth Capital get their price target a big boost from $65 to $80 a share after last night’s report.