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UPDATE: Solar City Shares Showing Weakness on Baird Downgrade

Jake L'Ecuyer

Solar City (NASDAQ: SCTY) shares were showing weakness Wednesday morning after Baird downgraded the company to Neutral from Outperform, while maintaining its $81 price target.

Ben Kallo, the lead analyst on the report, stated that while they expect the Q4 report to be in line with street estimates, the coming ITC ruling is a possible source of higher input costs. Kallo did state however, that increased cost reductions on the production side and on the financing side would be positive for the stock.

All things considered, the report stated that the risk/reward scenario wasn't favorable enough to get into the name.

With earnings coming early next week on February 24, traders appear to have been paying close attention to the report, offering the stock down roughly 1.94 percent to $78.40 in the pre-market.

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