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

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