SunPower's Management Transparency & Repositioning As Residential Solar Competitor Gain Analysts' Confidence
Credit Suisse analyst Maheep Mandloi upgraded SunPower Corp (NASDAQ: SPWR) from Underperform to Neutral and cut the price target from $21 to $17.
The re-rating was on valuation after the stock traded in line with the analyst's revised price target and as management addressed key investor concerns and valuation versus peers.
The reduced price target reflects analyst's reduced EBITDA growth in 2023 and 2024 due to higher asset cost of capital partially offset by higher electric bills.
Guggenheim analyst Joseph Osha initiated coverage on SunPower with a Neutral rating.
The company's efforts to reposition itself purely as a residential solar competitor bear fruit, and he thinks the new management team has the proper focus.
Residential solar developers are seeing robust industry growth due to rising utility rates, concerns about resiliency, and, more recently, the passage of the Inflation Reduction Act (IRA).
He expressed confidence in the industry growth outlook and SPWR's ability to participate in industry growth.
Continued industry consolidation should prove beneficial for large residential developers like SPWR, and there are elements of the IRA that appear to provide an advantage to large developers as well.
The stock appears fair value to him.
Price Action: SPWR shares traded higher by 16.50% at $22.31 on the last check Thursday.
Latest Ratings for SPWR
Date | Firm | Action | From | To |
|---|---|---|---|---|
Feb 2022 | Raymond James | Maintains | Outperform | |
Feb 2022 | Morgan Stanley | Maintains | Equal-Weight | |
Feb 2022 | UBS | Upgrades | Sell | Neutral |
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