Deutsche Bank Markets Research Rating Company Date 26 October 2014 Buy Vivint Solar Initiation of Coverage North America United States Reuters Bloomberg Exchange Ticker Price at 23 Oct 2014 13.07 Industrials VSLR.N VSLR US NYS VSLR Price target 20.00 Clean Technology 52-week range 16.01 - 10.47 Initiating Coverage with a BUY Vishal Shah Research Analyst (+1) 212 250-0028
[email protected] Initiating Coverage with BUY rating, $20 PT VSLR is one of the top residential solar installers in the country and is poised to Jerimiah Booream-Phelps benefit from accelerating growth of retail customers switching to solar as an Research Associate increasing number of states reach grid parity across the US. We expect the (+1) 212 250-3037 company’s differentiated sales model and flexible supply chain will enable
[email protected] 100% YoY growth of installations through 2016. Vivint’s door-to-door sales model should enable lower customer acquisition costs and we expect the introduction of additional innovative financing structures to act as catalysts to Price/price relative help lower the cost of capital and drive additional growth. 17 Asset Light, Differentiated Sales Model 15 Vivint differentiates itself from peers through differentiated sales model, 10- 14 20% lower customer acquisition costs, and asset-light sourcing strategy. The 12 company is well positioned to continue gaining share as industry consolidation 11 continues into 2017+, and remains technology agnostic with no manufacturing 9 base existing or planned. Door to door sales techniques help the company 10/14 efficiently utilize resources to install efficiently, generate leads, and achieve Vivint Solar S&P 500 INDEX (Rebased) high penetration rates in targeted neighborhoods.