Vivint Solar Upgraded To Outperform At Oppenheimer, Sees Improving Unit Economics On Horizon

On Monday, Vivint Solar Inc VSLR reported a strong Q2 EPS of $(0.49) vs. estimates of $(0.58) and revenues of $34.9 million vs. estimates of $24.9 million.

Following Vivint Solar's earnings beat, Oppenheimer's Colin Rusch upgraded the company to Outperform while introducing a $7.00 price target.

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"We are upgrading shares from Perform to Outperform given valuation support from its existing portfolio, a more conservative strategy that emphasizes cash-on-cash returns and sustainable growth, and the potential for improving unit economics based on lower equipment costs and a disciplined sales strategy," stated Rusch.

Solid Execution On Capital

Additionally, Vivint Solar's recent expansion of its term loan facility has demonstrated the company's ability to close large deals in a "relatively short time frame," stated Rusch. The analyst praised debt investors taking note of Vivint Solar's recent "de-risking of its balance sheet and rewarding it appropriately."

At the time of writing, Vivint Solar traded at $3.59, up 12.5 percent.