NEW YORK (TheStreet) -- Shares of SunEdison Inc. (SUNE) are higher by 6.01% to $20.64 on Thursday after the company announced TerraForm Power Inc., a unit the company created to own and operate some of its solar plants, filed for an IPO in order to raise up to $50 million, Reuters reported.
TerraForm could be valued between $800 million and $1 billion based on cash flow, SunEdison CFO Brian Wubbels told Reuters.
TerraForm will operate as a yield company, which is how solar companies cluster existing solar plants and then spin them into individual organizations.
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TerraForm will list on the Nasdaq under the ticker "TERP."
TheStreet Ratings team rates SUNEDISON INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNEDISON INC (SUNE) a SELL. This is driven by a few notable weaknesses, which we believe 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 we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, poor profit margins, weak operating cash flow and feeble growth in its earnings per share."