Bank of America/Merrill Lynch analyst Steven Millunovich this morning lifted his rating on SunPower (SPWRA) to Underperform from Neutral. “While the company still suffers from high-cost panels and negative free cash flow, an improved industry outlook along with a solid project pipeline seem to indicate the worst is over,” he writes in a research note.
Millunovich points to four factors:
“The industry backdrop has improved with demand visibility into the first half of 2011,” he writes, adding that sold China pricing in the $1.60-$1.65/watt range “should allow SunPower to maintain a premium.” The company has taken steps to address its cost disadvantage relative to China-based rivals “and is smart to highlight efficiency-adjusted cost per watt statistics.” Project pipeline in Italy and the U.S. provides better earnings visibility. CFO purchased 15,000 shares in the open market after Q2 results. SPWRA today is up 42 cents, or 3.1%, to $13.90. http://blogs.barrons.com/techtraderdaily/2010/10/05/sunpower-merrill-upgrades/?mod=yahoobarrons
Anyone else think the Nov 15 calls look like an interesting play?
I'm hearing that the industry is gonna have a big 2010 in terms of GW installed.
I started the year expecting 10GW or ~30% yr/yr (when everyone thought the world was going to end b/c of german fit adjustment). When the summer started I was expecting 50% growth to 11.3GW. Now I'm hearing 12.5GW (which would be 65% growth) thrown around as the LOW estimate!
Germany has already installed 5GW!
I don't think any of these analysts have been paying attention...