SunEdison is having an incredible day in the market today after Merrill Lynch made the decision to reinstate coverage on the stock. Today, we’ll take a look at the opinion Merrill Lynch has on SunEdison, how the market reacted to the news, and what we can expect to see moving forward.
Merrill Lynch Reinstates Coverage On SUNE
Merrill Lynch covered SUNE quite a while ago. However, they eventually decided to drop coverage on the stock and focus their assets in other areas. Nonetheless, the firm announced this morning that it has reinstated coverage on SUNE and considers it a strong stock. The firm gave SUNE a “Buy” rating along with a target price of $18 per share insinuating incredible upside potential.
Another Big Announcement: SunEdison Starts Major Construction
In other news, SunEdison announced this morning that it plans to begin construction of a 2.7 MW solar farm in Foxborough, MA. According to the announcement, this will be the first community solar project in the state of Massachusetts. The new solar project put in place by SUNE will allow homeowners and businesses to subscribe to a portion of the system’s output via net metering credits. Signing up for the solar project will yield up to a 10% discount on energy costs for consumers and businesses in the defined area.
How The Market Reacted To The News
As mentioned above, SUNE is having a wonderful day in the market today after the release of the positive news. Currently (2:19), SUNE is trading at $11.09 per share after a gain of 4.62% so far today.
What We Can Expect To See Moving Forward
Moving forward, things are looking overwhelmingly positive for SunEdison. First and foremost, while I don’t generally simply take an analyst’s word for what to expect, it seems as though Merill Lynch hit the nail on the head. When it comes to SunEdison, we are seeing tons of great news in the media recently. Aside from news in the media, we have seen positive activity from the company. For instance, the community solar project that was just announced today is likely to yield large amounts of revenue moving forward. With strong management, a strong company, and a strong plan, I see no reason that this stock is likely to fall for any long term period of time.
What Do You Think?
Where do you think SUNE is headed and why? Let us know in the comments below!
[Image Courtesy of SunRock Investments]