Credit Agricole Securities has cited how Apple Inc. (NASDAQ:AAPL)’s new composite-material patent could be a game-changer in the metal casing space. FBR holds out that the planned IPO of TerraForm Global (GLBL) and GP structure bode well for Sunedison Inc (NYSE:SUNE).
Credit Agricole on Catcher and Apple (AAPL)
Credit Agricole Securities Taiwan has mentioned Apple Inc. (NASDAQ:AAPL) in its analysis of Catcher Tech, a supplier of components to Apple. First, Credit noted that the new patent for composite-material that Apple filed raises the bar for its metal-casing suppliers. Credit goes on to say that Catcher is well-situated to take advantage of the patent once it is commercialized. With the composite-material, Apple Inc. (NASDAQ:AAPL) would be able to design metal chassis that doesn’t hinder the penetration of wireless signals. The composite-material technology can be used in both Apple Watch and the iPhones.
FBR weighs in on SUNE
FBR has lifted its price target on Sunedison Inc (NYSE:SUNE) to $38 from $34, citing various catalysts likely to bolster its gains. Some of the catalysts are TerraForm Global (GLBL) and the building of a GP/LP structure. If the management of SUNE executes properly, FBR says that SUNE has the potential to reach $51.
In the assessment of TerraForm Global, FBR sees the entity having a portfolio size of 4.7 GW at the end of 2017. For that, the firm expects TerraForm Global to generate CAFD in the range of $589 and $919 million. That represents 2015 to 2017 CAGR of 60% to 90%. A majority of TerraForm Global’s CAFD is expected to come from wind at 50% and solar assets at 39%. FBR noted that TerraForm Global’s CAFD would be generated mainly in Central America, Brazil, China and India.
Sunedison Inc (NYSE:SUNE) recently hinted about plans to pursue a GP structure. That structure would see the company break up into four distinct entities with one being a holding company. According to FBR, such a structure would be great for the cash flow story of the company, especially if SUNE would be able to retain 90% hold of the GP.