Vivint Solar's Stock Soars After Upbeat Results Prompts Analyst Upgrade

Shares of Vivint Solar Inc. ran up 14% in active morning trade, after better-than-expected second-quarter results prompted an analyst to turn bullish on the solar energy systems seller. Volume reached 3.8 million shares within the first hour of trade, which was already more than five times the full-day average. Vivint reported late Monday an adjusted per-share loss that narrowed to 49 cents from 85 cents a year ago, compared with the FactSet loss-per-share consensus of 58 cents. Revenue more than doubled to $34.9 million from $16.1 million, and beat the FactSet consensus of $25.0 million. Oppenheimer analyst Colin Rusch raised his rating on Vivint to outperform from perform, citing valuation support from Vivint's existing portfolio, lower costs and a disciplined sales strategy, coupled with the closing of a key financing deal. He introduced a stock price target of $7, which is 97% above current levels. "With [Vivint's] recent expansion of its term loan facility, we believe the company is demonstrating its ability to close large deals in a relatively short time frame," Rusch wrote in a note to clients. The stock, which has now rocketed 31% in three sessions, was still down 62% year to date, while the S&P 500 has gained 6.9%.