"As we fail to fully grasp the rationale behind TSLA's proposed acquisition of SCTY, we believe yesterday's announcement suggests SolarCity has very little value," Axiom's Gordon Johnson wrote in a note to clients Wednesday.
He added, "The proposed premium to SCTY's stock price ... is still -44.6% below the stock's avg. price of $49.6 during '15 & just +2.8% above the stock's avg. price of $26.7 in YTD '16 – in other words, if TSLA truly believes in SCTY, then why such a modest premium?"
Johnson's picks have a 12.5 percent one-year average return, according to analyst ranking service TipRanks, placing him in the top 5 percent of all Wall Street analysts covering any industry.