NEW YORK (TheStreet) -- SunEdison (SUNE) shares are up 0.14% to $21.51 in trading on Wednesday, one day after the solar energy company announced that it was making a move into the wind energy business by acquiring privately held First Wind for $2.6 billion.
Analysts at Merrill Lynch (BAC) are fans of the deal and think the company made a shrewd move to expand its business. The firm maintained its "buy" rating on the company shares and increased its price target to $32 from $28.
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"The good news is the deal's earnout provision requires SUNE to retain key First Wind employees who have developed, own and/or operated over 1GW of contracted wind generation in the United States. SunEdison's assertion that the 1.6GW pipeline is fully tax-credit (ITC and PTC) compliant also suggests to us that at least a portion of project related expenditures have already been incurred at most if not all projects due to continuous construction requirements for eligibility," said the firm.
TheStreet has further coverage of the deal here.
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: