SunPower (SPWR) Valuation Already Reflects Positives, Says Goldman Sachs

August 1, 2013 2:23 PM EDT
Get Alerts SPWR Hot Sheet
Price: $6.99 +1.75%

Rating Summary:
    14 Buy, 25 Hold, 6 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Goldman Sachs maintained a Neutral rating on SunPower (NASDAQ: SPWR) with a modified price target of $22.00 (from $20.00). SunPower reported solid Q2 results and guidance, but in the view of analyst Brian Lee, the stock already reflects positives.

"As expected, SunPower delivered very strong 2Q13 results on the back of strength in Japan, an improved Europe, and solid execution in the US – which we believe also accounted for the bulk of the $100mn pull-in benefit. Near-term, we see fundamentals continuing to trend positive," said Lee.

"That said, the stock’s outsized gains YTD suggests a lot of positives are already priced in, and we believe a premium valuation vs. peers, combined with a declining earnings growth cadence through 2H13 (vs. 2H-weighted for peers) would suggest headwinds to further upside."

For an analyst ratings summary and ratings history on SunPower (NASDAQ: SPWR) click here. For more ratings news on SunPower click here.

Shares of SunPower closed at $27.65 yesterday.

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