VSLR - Sunny demand improvement leads J.P. Morgan to raise targets on these solar companies

J.P. Morgan is boosting estimates (and price targets) on its distributed solar companies coverage, following some recent industry conversations encapsulating a few recent positives. Demand trends are still improving from March/April and the onset of the COVID-19 pandemic in the U.S., and the firm points to Vivint Solar's ABS debt issuance as an upbeat development for solar's cost of capital and equity valuations. The demand improvement is broad, the firm says, reaching across geographies in the U.S. and internationally, and that should "benefit all companies along the value chain." As for Vivint's (VSLR) issuance, it priced an ABS facility of about $250M with a low coupon (2.2% in the A tranche and 3.2% in the B tranche), "which we believe is the cheapest asset-backed financing yet achieved in the industry." That should justify higher valuations to lease providers' existing assets as well as drive growth and profitability for future installations,

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Sunny demand improvement leads J.P. Morgan to raise targets on these solar companies