If you purchased shares of SolarCity Corp (NASDAQ:SCTY) between March 6, 2013 and March 18, 2014, and/or if you purchased SolarCity shares in March 2013 or earlier and currently hold any of those shares, you might be entitled to a potential settlement. On April 7th, the Shareholders Foundation, Inc. announced a lawsuit against SolarCity on behalf of certain purchasers of SolarCity common stock. The plaintiffs claim that SolarCity made, “allegedly false and/or misleading statements and/or failed to disclose that SolarCity lacked adequate controls over financial reporting, that SolarCity misclassified its reported expenses, that SolarCity’s prior financial statements required restatement, and that as a result of the above, SolarCity’s financial statements were materially false and misleading at all relevant times.”
Despite this news, analysts are not writing-off SolarCity Corp (NASDAQ:SCTY). In fact, some analysts are recommending BUY SolarCity, while others are choosing to remain on the side-lines, but close by, with a HOLD SolarCity rating. To see all analyst recommendations about SolarCity, download TipRanks.
Goldman Sachs analyst, Brian Lee reiterated his BUY SolarCity Corp (NASDAQ:SCTY) recommendation, arguing that, “the company continues executing on its efforts to open the securitization market to the solar asset class.” He sees SolarCity as the potential, “leader in solar asset securitization.” Brian Lee has a -1.7% average return over S&P-500 and a 46% success rate of recommendations.
Robert W. Baird analysts have done their own research, and while they remain positive (like the Goldman Sachs analysts), they are acting with caution. Analysts Ben Kallo and Tyler Frank recommend HOLD SolarCity Corp (NASDAQ:SCTY) and reiterated their $75 price target. They saw the announcement of the second asset-backed security as “incrementally positive” even though it was smaller than they had expected. But “because the tax equity is more complex, it could impact the timing of SolarCity Corp’s future asset-backed securities.” Adding, “because of SCTY’s current valuation and also the ‘overhang of Chinese tariff,’” they’re remaining on the sidelines. Ben Kallo has a +16.0% average return over S&P-500 and a 65% success rate of recommended stocks. And, Tyler Frank has an +8.7% average return over S&P-500 and a 67% success rate of recommended stocks.
To continue following analyst recommendations as the lawsuit unfolds, be sure to download TipRanks, and start making informed financial decisions with advice you can trust.
