Kaufman Bros. Upgrades SunPower (SPWRA) to Hold; Fairly Valued After Recent Decline

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SPWRA Hot Sheet

Rating Summary:
0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23

Kaufman Bros. upgraded SunPower (NASDAQ: SPWRA) from Sell to Hold with a price target of $10.00.

Kaufman analyst says, "SunPower has declined 50%+ in the last three months, which has eliminated most of the downside risk, in our opinion. The stock and the industry have been hurt by macro concerns over the current oversupply of solar modules and also the recent bankruptcy announcements from Solyndra, Evergreen Solar (Nasdaq: ESLR), and Spectrawatt. The bankruptcy of Solyndra is casting a pall over the entire space as investors are worried that future government incentives, including DOE loan guarantees could now be at risk. While the Solyndra investment by the government was disappointing and ill-advised, we continue to believe that the DOE loan guarantees for solar projects will yield positive returns for the government and as such are not likely at risk for cancellation. Therefore, SunPower's projects should be safe as the projects yield double digit IRRs."

For more ratings news on SunPower click here and for the rating history of SunPower click here.

Shares of SunPower closed at $9.55 yesterday, with a 52 week range of $9.55-$23.36.

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