UBS Downgrades SunPower (SPWR) to Neutral; Unable to Offset Extremely Challenging Macro
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
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."
Shares of SunPower closed at $6.32 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Pivotal Research Downgrades Kroger (KR) to Hold
- BTIG Cuts PT on Workday (WDAY) to $88 Following Q3 Results; Affirms at 'Buy'
- Jefferies Cuts Price Target on PG&E Corp. (PCG) to $65 Following Rate Case Decision
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Downgrades
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!