UPDATE: JPMorgan Downgrades SolarCity

In a report published Tuesday, JPMorgan analyst Paul Coster downgraded SolarCity SCTY to Neutral from overweight, with a $68.00 price target. According to the report, solid execution of the firm's growth strategy could lead to upward revisions to estimates, but with the stock trading above the analyst's price target, it is believe the upside potential is now equally offset by potential risks and that the stock is appropriately valued. “We believe that fundamentals remain constructive; the firm is doing an excellent job of reducing the cost of finance, expanding market reach and increasing efficiency; however, at this price level some of the exogenous risks come into focus including rising interest rates, competition and growing opposition to distributed solar from utilities,” the report noted. “We are not changing our estimates; we believe SCTY is executing well against the 6GW/one million customer target, and we leave our DCF-based price target of $68 unchanged. We are keen to add to positions, but only at the right price, we we look for pull-backs as buying opportunities.” SCTY closed Friday at $75.11.