TerraForm Power Inc (TERP) Shares Are Up Following Tepper’s Appaloosa Letter to Board


Shares of TerraForm Power Inc (NASDAQ:TERP) are flying high this morning on heavy volume in pre market trading. The reason seems to be two-fold.

First and foremost, Appaloosa Management’s David Tepper has issued a letter to the Board of Directors at TerraForm Power Inc (NASDAQ:TERP). The letter critisizes the companies recent board appointments and goes on to state:

“We note with interest this week’s announced changes to the TERP management team and Board of Directors. Notwithstanding your explanation in the release, we find that ‘aligning the company’s strategic focus around acquiring projects from its Sponsor’ offers little apparent benefit for TERP stakeholders and raises concern for obvious conflicts between the interests of TERP and its ‘Sponsor’, SunEdison (“SUNE”).

Appaloosa then requests further disclosure on Teraform’s part related to their relationship with their Sponsor.

Additionally Oppenheimer has upgraded shares to an ‘outperform’ from a ‘market perform’.
The stock closed at $6.9 during the last session. It is down 83.10% since April 28, 2015 and is downtrending. It has underperformed by 81.47% the S&P500.

Out of 8 analysts covering Terraform Power Inc (NASDAQ:TERP), 4 rate it “Buy”, 1 “Sell”, while 3 “Hold”. This means 50% are positive. $41 is the highest target while $14 is the lowest. The $24.86 average target is 260.29% above today’s ($6.9) stock price. Terraform Power Inc was the topic in 15 analyst reports since August 19, 2015 according to StockzIntelligence Inc. UBS downgraded the stock on November 25 to “Sell” rating. Zacks downgraded the shares of TERP in a report on September 22 to “Hold” rating. Finally, Bank of America reinitiated the stock with “Buy” rating in a September 15 report.

TerraForm Power, Inc. , formerly SunEdison Yieldco, Inc., owns and operates contracted clean power generation assets. The company has a market cap of $1000.00 million. The Firm operates the power generation assets of SunEdison, Inc. and its consolidated subsidiaries (SunEdison), and third parties. It currently has negative earnings. It focuses on acquiring solar and wind generation assets serving utility, commercial and residential customers.