SolarCity Gains After Boosting Rooftop Installation Forecast

May 08, 2014 4:18 pm ET

(Updates with closing share price in second paragraph.)

May 8 (Bloomberg) -- SolarCity Corp., the biggest U.S. solar power provider, advanced the most in six months after raising its installation forecast.

SolarCity gained 12 percent to $53.60 at the close in New York, the most since Oct. 16.

The company, based in San Mateo, California, expects to install 500 megawatts to 550 megawatts of rooftop systems this year, a 25-megawatt boost over its March forecast, according to a statement yesterday.

The company installed 82 megawatts in the first quarter, 78 percent more than a year earlier. It expects to add as much as 1 gigawatt in 2015.

“SolarCity aims to deploy more in 2015 than the size of the entire U.S. PV market -- residential, commercial, utility -- in 2010,” about 878 megawatts, Pavel Molchanov, an analyst at Raymond James & Associates Inc. in Houston, said today in a note to investors. He rates the shares the equivalent of a buy with a 12-month price target of $75.

SolarCity installs rooftop solar panels at little to no upfront cost. Customers sign long-term contracts to buy the electricity.