UBS Downgrades SunPower (SPWR) to Neutral; Unable to Offset Extremely Challenging Macro

November 11, 2016 6:34 AM EST
Get Alerts SPWR Hot Sheet
Price: $7.04 -3.3%

Rating Summary:
    14 Buy, 25 Hold, 6 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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UBS downgraded SunPower (NASDAQ: SPWR) from Buy to Neutral with a price target of $7.00 (from $13.00).

Analyst Julien Dumoulin-Smith commented, "We are downgrading SPWR from Buy to Neutral and reducing our PT from $13 to $7. Despite our initial thesis that shares were close to a near-trough valuation, multiple guidance revisions in the space of several months and extremely challenging macro environment have demonstrated that even the highest quality product in a commodity space is still subject to the same pressures, regardless of temporary offsets like legacy projects and restructuring actions. With growth still projected off depressed 2016 EBITDA, we don’t necessarily think we're d/g at the bottom if DG margins could still deteriorate, suggesting downside to limited equity if flattish off '16 (particularly ex-Henrietta). We worry that lower panel prices could still have a knock on effect on ability to sell at SPWR's historically premium prices, albeit could prove a margin tailwind today."

For an analyst ratings summary and ratings history on SunPower click here. For more ratings news on SunPower click here.

Shares of SunPower closed at $6.32 yesterday.

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