Vivint Solar's Q1 Growth Execution Reaffirms Confidence, BofA Says

Vivint Solar Inc VSLR delivered another quarter of healthy growth, which instills added confidence in the company achieving its FY2019 megawatt growth guidance of 15%, according to Bank of America.

The Analyst

BofA’s Julien Dumoulin-Smith maintained a Buy rating on Vivint Solar, raising the price target from $11.50 to $12.50.

The Thesis

Vivint Solar deployed 45.6MW in the first quarter, slightly above the high end of the guidance range. The company announced a better-than-expected NPV of 99 cents per W, and management reiterated their expectations of achieving an FY2019 NPV in excess of $1 per W, Dumoulin-Smith wrote in the note.

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Vivint Solar announced more retail partnerships with Costco Wholesale Corporation COST and BJs Wholesale Club Holdings Inc BJ, which supports growth beyond 2020.

The increased confidence in the 15% growth guidance for 2019 and expectations of this accelerating beyond 2020, there could be a continued inflection sentiment through the rest of this year, the analyst said.

Price Action

Shares of Vivint Solar surged 9 percent to $7.26 at time of publication Tuesday.