The firm said it initiated coverage on the company, which installs rooftop solar panels, based on its belief Vivint Solar has "sizeable potential growth opportunities."
"Vivint Solar should benefit from rapid near-term growth in the rooftop solar energy market. Rooftop solar contributes only ~1% of U.S. electric generation capacity," Barclays said.
Barclays said it is expecting Vivint Solar's cumulative installations to reach 1,120 MW by 2016.
However, the firm said a number of headwinds could pose a risk to the company's growth story including "electric utility regulatory reforms, rising interest rates, and increasing competition in the industry. We believe the sizeable growth opportunity in rooftop solar is balanced by these risks, which threaten the growth trajectory and economics of the business."