Credit Suisse Downgrades SunPower (SPWR) to Neutral; Unexpected Guidance Cut 'Disconcerting'
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Credit Suisse downgraded SunPower (NASDAQ: SPWR) from Outperform to Neutral with a price target of $12.00 (from $32.00) as guidance slashed.
Analyst P. Jobin commented, ": We are downgrading SPWR from Outperform to Neutral and lowering our Target Price from $32 to $12; our estimates are cut to $0.36/$0.73/$0.69 from $1.15/$1.55/$1.64 for 2016/17/18 respectively. The company reduced 2H16 guidance ~40% and provided 2017 guidance well below investor expectations (54% below prior analyst day targets). The cuts are problematic in their own rights, but the bigger issue for the stock from here is management credibility and lack of apparent stability in the core business. There are a lot of moving parts to the realigned SunPower that will require strong execution in the coming quarters, and with the stock down 30% after hours it is clear to us that management needs to start by repairing its reputation. We believe in the long-term secular growth story underpinning the renewable space, and management's typically conservative approach, but find the unexpected guidance cut - attributed to factors that should have been apparent many months ago - to be disconcerting."
Shares of SunPower closed at $14.78 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- PayPal (PYPL) PT Raised to $47 at Credit Suisse; Results Just 'Ok' But Visability Increases Conviction
- Jefferies Cuts Price Target on Packaging Corp. (PKG) to $93; Reiterates Buy
- Wedbush Reiterates Outperform on Pool Corp. (POOL) Following 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Downgrades
Related EntitiesCredit Suisse
Sign 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!