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Sunedison Should Continue Improving as the Solar Market Grows

August 25, 2014 | About:

Sunedison (SUNE) is on an outstanding run in 2014. The stock has picked up around 85% so far this year, and it would seem that it won't be using up steam any time soon. As of late, Canaccord started scope on Sunedison and provided for it a $30 value target, demonstrating an upside of around 25% from current levels. The organization has stretched solid open door beyond because of the normal development of the solar business, and it is attempting the best to take advantage of it.

Discovering solid footing

Sunedison has seen significant change in its solar projects, with arrangement of almost 150 MW in the first quarter and an alternate 450 MW under construction. The organization is experiencing strong interest for its varied project pipeline, which it intends to convey within a brief span of time. Sunedison's venture buildup is also moving in the right direction. It has increased to 3.6 GW in the first quarter, an increase of 170 megawatts on a sequential basis. The organization has a sum of 80 new projects. These projects are spread across diversified markets in countries like the U.S., Japan, the U.K., India.

In the future, Sunedison sees robust long-haul megawatt development. Specifically, the organization is focusing on quick development at a high esteem per watt. It believes that these things will allow it to improve shareholder returns, which is the reason it has held certain significant projects on its accounting report.

At the first quarter's end, Sunedison held roughly 240 megawatts, at a value of about $420 million. As the interest for solar vitality projects is strong across the world, this maintenance will amplify held esteem and net present quality (NPV) per watt, eventually profiting shareholders. Sunedison is committed to augmenting held quality, and the efforts will continue in the second quarter. In the second quarter, the organization expects to sell more or less 60 to 80 MW at a normal selling cost of $2.85 to $3.15, and plans to hold 100 MW to 120 MW worth of projects.

Agreements and acquisitions to drive further development

Sunedison is expected to profit from strategic initiatives such as signing a concurrence with the administration of Saudi Arabia and its investment organization, Sanabil Investments, to store a study for vertically incorporated solar photovoltaic solar assembling office in the country.

This venture will blanket most of the steps of crystalline silicon PV producing from polysilicon through modules. What's more, Sunedison as of late gained a stake in Silver Ridge Power. It has paid $178.6 million for this. Silver Ridge Power is a solar force plant operator.

Venturing into more markets to tap solar development

Sunedison isn't discovering much trouble in securing financing for its projects. As of late, it closed an obligation arrangement to back the construction of a solar force plant in Chile.

Thus, the solar organization is growing its presence across the globe and is concocting impressive projects. Presently, the solar industry is developing at a fabulous pace, and it is imperative for Sunedison to possess a strong overabundance with a specific end goal to capitalize on this development.


Thus, Sunedison has strong prospects going ahead, and analysts seem to have perceived the same. This year, the organization's bottom line is relied upon to increase 47%, emulated by 109% one year from now. So, despite the fact that the stock has acknowledged at a solid rate this year, it still has more upside in store. As such, investors should keep clutching Sunedison as it can convey solid development over the long haul, remembering the industry's development and Sunedison's own particular prospects.

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