The firm said it reduced its rating on the solar energy company based on a valuation call, due to the rapid rise in the stock.
Baird maintained its $83 price target on SolarCity.
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Additionally, solar companies are facing a shortage of photovoltaic panels, due to a recent rise in demand for the product, this could result in a rise in price and a limit on deliveries, Bloomberg reports.
Separately, TheStreet Ratings team rates SOLARCITY CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOLARCITY CORP (SCTY) 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 unimpressive growth in net income, generally high debt management risk, weak operating cash flow and feeble growth in its earnings per share."