NEW YORK (TheStreet) -- Shares of Vivint Solar (VSLR - Get Report) , which installs solar energy systems for homes, are rising after a number of analysts initiated coverage of the name with "Buy" or equivalent ratings.
WHAT'S NEW: Credit Suisse initiated coverage of Vivint with an Outperform rating. The company, which has a 15% share of the U.S. residential solar leasing market, has a unique sales model that utilizes door to door approaches to potential customers, the firm stated. This method reduces the company's sales costs compared with its peers, the firm believes. Meanwhile, the growth of residential solar is likely in its early stages and the economics of the business is "compelling," contended Credit Suisse, which set a $21 price target on Vivint. Deutsche Bank analyst Vishal Shah initiated coverage of Vivint with a Buy rating, saying that the company is poised to benefit from accelerating growth of residential solar installations as solar energy becomes as cheap as fossil fuels in more U.S. states. The company's door-to-door sales model should lower its costs, Shah added. Moreover, Vivint should be able to use additional, innovative financing techniques to reduce its capital costs and stimulate its growth, according to the analyst. He believes that the company is well-positioned to gain market share and set a $20 price target on the stock.
ANOTHER TO WATCH: SolarCity (SCTY) also installs solar energy systems in homes.
PRICE ACTION: In mid-morning trading, Vivint climbed 50c, or 3.7%, to $14.14.
WHAT'S NOTABLE: Vivint Solar priced 20.6M shares at $16.00 and opened trading at $17.01 in its initial public offering on October, 1.
Reporting by Larry Ramer.