J.P. Morgan Reiterates a Hold Rating on TerraForm Power

By Austin Angelo

In a report released today, Paul Coster from J.P. Morgan reiterated a Hold rating on TerraForm Power (NASDAQ: TERP), with a price target of $13. The company’s shares opened today at $12.80.

Coster said:

“TERP issued an investor update presentation with 3Q operating metrics and guidance for FY16. Audited financials are still on the come. FY16 revenue and EBITDA guidance were slightly below our expectations and net income was negatively impacted owing to a higher interest expense than we had expected. The 3Q cash balance was slightly higher than expected. TERP did not issue guidance for CAFD but maintains that it will be “substantially lower” than the forecast issued prior to the SUNE bankruptcy owing to factors such as loss of financial and operational support. Encouragingly, TERP expects to become operationally independent from SUNE by January, with a stand-alone org structure, independent IT, and third-party asset management and O&M providers. TERP is seeking consent from bondholders to extend a 12/2 deadline for the company to become current with its SEC filings. We are adjusting our estimates, though our price target remains $13.”

According to TipRanks.com, Coster is ranked 0 out of 5 stars with an average return of -5.2% and a 45.8% success rate. Coster covers the Technology sector, focusing on stocks such as Trimble Navigation Limited, SolarEdge Technologies, and Daystar Technologies.

TerraForm Power has an analyst consensus of Moderate Sell.

The company has a one year high of $14.69 and a one year low of $7.23. Currently, TerraForm Power has an average volume of 947.2K.

Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TERP in relation to earlier this year.

TerraForm Power, Inc. owns and operates contracted clean power generation assets. The company’s objective is to acquire assets with contracted cash flows primarily from owning solar and wind generation assets serving utility, commercial and residential customers. It intends to acquire other clean power generation assets, including wind, natural gas, geothermal and hydro electricity as well as hybrid energy solutions that enable the company to provide contracted power on a 24/7 basis. TerraForm Power was founded on January 15, 2014 and is headquartered in Beltsville, MD.