Signs Showing that Sunedison Will Reach $35

Sunedison Inc (NYSE:SUNE), a developer and manufacturer of silicon wafers for the photovoltaic segment, has started the week with a rally, gaining over 8%, currently trading at approximately $21 per share. The stock has been performing pretty well so far, gaining around 60% year-to-date and over the past year, returning almost 150%, which is impressive in comparison with the semiconductors industry average returns of around 14.30% year-to-date and 27.30% over the past year.

Sunedison Inc (NYSE:SUNE)

However, there is a particular reason for Sunedison Inc (NYSE:SUNE) to start the week on a positive note. On Monday, Deutsche Bank announced that it has raised the target price for Sunedison to $35.00, from $13.00 and upgraded the rating to ‘Buy’ from ‘Hold’. As Streetinsider quoted a report from the firm, Deutsche Bank’s analyst, Vital Shah, considers that the current price of the company does not include the pricing of the company’s upcoming IPO of Yieldco.

Sunedison Inc (NYSE:SUNE) has recently filed the initial registration statement with the SEC for its Yieldco Power, Inc., renamed as TerraForm Power. The newly established company will operate Sunedison’s most attractive projects instead of selling them to third parties.

We should also mention, that Sunedison Inc (NYSE:SUNE) have been spotted by investors much earlier. One of the bullish investors is David Einhorn, whose fund, Greenlight Capital boosted its stake in Sunedison by an eightfold during the first three months of the year to 11.85 million shares. Einhorn also presented the company to his fund’s investors in the first-quarter letter to shareholders. In the letter, Einhorn stated that taking into account the IPO of yieldco (TerraForm) the price for Sunedison’s stock, taking into account other factors could amount to around $35 per share, which coincide with the aforementioned target from Deutsche Bank.

With a market cap of around $5.60 billion and EPS of -$2.30 for the first quarter of the year, Sunedison Inc (NYSE:SUNE) represents an attractive opportunity for investors at the current prices. Another investor that has even higher bets on Sunedison is John Lykouretzos, whose fund Hoplite Capital Management has initiated a stake in the company during the first quarter of the year, holding 16.01 million shares, the $301.6 million stake being the largest in terms of value in its equity portfolio. In addition, we should mention Rishi Bajaj, Toby Symonds, and Steve Tesoriere’s Altai Capital, which in its latest 13F reported holding 18.43 million shares of Sunedison, the stake amassing over 40% of the fund’s equity portfolio.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!