NEW YORK (TheStreet) -- Shares of SolarCity (SCTY) are falling by 3.88% to $22.81 on Friday afternoon, as Deutsche Bank decreased its price target to $32 from $49 on the stock. The firm has maintained its "buy" rating on SolarCity.
"While we like the longer term outlook for SCTY, we acknowledge that SCTY shares are trading at a healthy multiple of operating assets and considering the large capital requirements to achieve 2016 operating targets, shares may remain in a trading range in the near term," Deutsche Bank analysts said in an investor note, explaining the lowered price target.
In addition, the San Mateo, CA-based renewable energy provider was approved on Wednesday of $485 million in NY state funding to build and operate a solar-panel factory in Buffalo, under the condition that the company would create the 1,400 jobs it had originally predicted, the New York Times reports.
SolarCity is under investigation by the state's governor's office after it drastically cut the estimated job number to 500 before the funding was approved by the Public Authorities Control Board. SolarCity also tried delaying the opening of the factory but under the board's new conditions it will have to report monthly with updates on the construction progress, the Times says.
Separately, TheStreet Ratings rated SolarCity as a "sell" with a score of D.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
This is driven by a number of negative factors, which TheStreet Ratings believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks that are covered.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: SCTY