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Beleaguered SunEdison ( SUNE ) and Vivint Solar ( VSLR ) stocks brightened Friday, continuing a two-day liftoff after a Delaware judge cleared their merger path by tossing an injunction request from activist investor Appaloosa Management. SunEdison stock rocketed as much as 61% Friday, after rising 37% Thursday. But the stock still is trading below 2.50, up 35% in afternoon trading on the stock market today . Vivint Solar stock rose as much as 41%, and it was up 35% Friday afternoon, near 8. TerraForm Power ( TERP ) stock was up a fraction Friday afternoon. Appaloosa, which owns 9.5% of TerraForm Power, has waged war on SunEdison’s plan to drop Vivint Solar’s 523-megawatt portfolio down to yield company TerraForm Power. SunEd’s Vivint acquisition is pending. Last month, David Tepper-managed Appaloosa demanded “immediate injunctive relief,” claiming SunEdison would force TerraForm Power to take on $960 million in debt. A judge denied that injunction late Thursday, SunEdison said. “We are gratified that the court denied the injunction and now look ahead to continuing to navigate current market conditions,” SunEdison said in a statement . Dropping Vivint Solar’s rooftop assets to TerraForm Power frees up some space on SunEdison’s constrained balance sheet, Credit Suisse analyst Patrick Jobin wrote in a research report. “This should also relieve some artificial pressure to sell the Vivint Solar operating portfolio as a distressed seller,” he wrote. “We think an asset sale is possible given the aversion TerraForm Power shareholders have for residential solar assets, but it is no longer a necessity.” Jobin maintained his neutral rating and 3 price target on SunEdison stock. But S&P Capital analyst Angelo Zino cut his price target on SunEdison stock to 3 from 7. He maintained his hold rating on shares. The ruling gives SunEdison some flexibility to close the Vivint Solar deal. “However, we are growing more concerned about SunEdison’s financial position given the lack of asset sales thus far announced,” Zino wrote in a report. Scalper1 News
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