SunPower (SPWRA) Analysts Cautious About Strong Q4 Results, Forecast
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: 7 | Down: 20 | New: 3
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 20 | New: 3
Join SI Premium – FREE
SunPower Corp. (NASDAQ: SPWRA) shares are up 5.5 percent to $18.40 in midday market movement on Friday after the solar company reported better-than-expected fourth-quarter results and guided for the full year ahead of the Street.
Analysts remain cautiously optimistic on SunPower following the results, including Kaufman Bros reiterating a Hold rating on the stock, but raising the firm's price target from $13.50 to $17.
Kaufman analysts said, "As the market heads into potential oversupply in 2011, SPWRA's cost reduction goals will become increasingly important to remain competitive. In our estimation, the company fully expects significant price declines and is prepared to cut costs to offset these likely declines. The likely issue for investors is that there is significant uncertainty for the second half of the year and SPWRA's earnings expectations are weighted toward this period."
Goldman Sachs also reiterated its Neutral rating on SunPower, while lifting its price target from $15 to $16.50. The firm says, "We have a favorable view of the company’s mass customization strategy, which blends standardized yet highly engineered solar systems with innovative project financing and diverse sales channels. Our Neutral rating reflects a more balanced risk/reward relative to coverage peers."
Wedbush maintains an Underperform rating on SunPower while also raising its price target from $7 to $11. The firm says, "We remain cautious on SunPower shares given the company’s cost structure relative to industry peers. While we expect SunPower may continue to enjoy its first mover advantage in the systems business in the short term, we believe systems business margins will come under pressure over time as competitors move downstream."
Analysts remain cautiously optimistic on SunPower following the results, including Kaufman Bros reiterating a Hold rating on the stock, but raising the firm's price target from $13.50 to $17.
Kaufman analysts said, "As the market heads into potential oversupply in 2011, SPWRA's cost reduction goals will become increasingly important to remain competitive. In our estimation, the company fully expects significant price declines and is prepared to cut costs to offset these likely declines. The likely issue for investors is that there is significant uncertainty for the second half of the year and SPWRA's earnings expectations are weighted toward this period."
Goldman Sachs also reiterated its Neutral rating on SunPower, while lifting its price target from $15 to $16.50. The firm says, "We have a favorable view of the company’s mass customization strategy, which blends standardized yet highly engineered solar systems with innovative project financing and diverse sales channels. Our Neutral rating reflects a more balanced risk/reward relative to coverage peers."
Wedbush maintains an Underperform rating on SunPower while also raising its price target from $7 to $11. The firm says, "We remain cautious on SunPower shares given the company’s cost structure relative to industry peers. While we expect SunPower may continue to enjoy its first mover advantage in the systems business in the short term, we believe systems business margins will come under pressure over time as competitors move downstream."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- CarGurus (CARG) Tops Q2 EPS by 5c ; Offers Guidance
- Goldman Sachs Reinstates Smiths Group (SMIN:LN) (SMGKF) at Buy
- NerdWallet, Inc (NRDS) Misses Q2 EPS by 3c ; Offers Guidance
Create E-mail Alert Related Categories
Analyst Comments, Earnings, Guidance, Insiders' BlogRelated Entities
Kaufman Bros., 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!
