Real Goods Solar shares rise on analyst upgrade
LOS ANGELES (AP) — Shares of Real Goods Solar Inc. surged Monday after Cowen & Co. raised the solar energy company's price target, citing improved prospects for commercial projects.
THE SPARK: In a research note, Cowen analysts Robert Stone and James Medvedeff raised their price target for Real Goods Solar to $5 from $3.50.
THE BIG PICTURE: Real Goods Solar, based in Louisville, Colo., provides solar power systems for homes and businesses. It has installations in more than 30 states.
THE ANALYSIS: The Cowen analysts noted that Real Goods Solar has several commercial projects scheduled to be completed this year, including seven in Vermont slated to be co-developed with Green Lantern Capital, and four in Massachusetts.
In addition, the company has launched a joint venture with Altus Power America Management that the analysts said should help develop Real Goods Solar's pipeline of commercial projects.
While unusually cold winter weather may have slowed the pace of the installations, the analysts expect Real Goods Solar will be able to catch up on any delayed projects this year.
The Cowen analysts rate the stock "Outperform."
SHARE ACTION: Shares rose 16 cents, or 4.2 percent, to $3.93 in afternoon trading. The stock is up about 25 percent so far this year.