Auriga Reiterates Sell on SunPower (SPWRA) due to Cash Flow Concerns
Tweet
Share
E-mailGet Alerts SPWRA Hot Sheet
Price: $7.29 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 16 | New: 42
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 16 | New: 42
Join SI Premium – FREE
Auriga analyst Mark Bachman reiterated his Sell rating on SunPower Corp. (NASDAQ: SPWRA) with a price target of $11, as he argues that the 17 percent rally in the stock is more than overdone.
Bachman argues that the issue is the cash flow, and the company must show on Thursday when it reports earnings, that it can generate cash from operations given the general downtrend int he solar industry.
“We are not inclined to move off our bearish stance on SunPower cost until we see evidence it can at least match the coming price declines if not actually keep pace with Asian cost programs,” Bachman said.
The analyst added that the company will see recent strength in the Italian solar market.
Shares of SunPower are up 16 cents to $16.20 in midday market movement on Monday.
Bachman argues that the issue is the cash flow, and the company must show on Thursday when it reports earnings, that it can generate cash from operations given the general downtrend int he solar industry.
“We are not inclined to move off our bearish stance on SunPower cost until we see evidence it can at least match the coming price declines if not actually keep pace with Asian cost programs,” Bachman said.
The analyst added that the company will see recent strength in the Italian solar market.
Shares of SunPower are up 16 cents to $16.20 in midday market movement on Monday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- DA Davidson Reiterates Buy Rating on Tractor Supply Company (TSCO) Amid Soft Q2 Expectations
- Morgan Stanley upgrades Global Payments to Overweight on Worldpay optimism
- HSBC sees "some proper warnings signs emerging" in risk assets
Create E-mail Alert Related Categories
Analyst Comments, Insiders' BlogRelated Entities
Auriga, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
