Needham & Company Downgrades SunPower (SPWRA) to Underperform; When the Tender Offer Closes, We Expect Weak Sector Fundamentals to Weigh On Share Price
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Price: $7.29 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company downgraded SunPower (NASDAQ: SPWRA) to Underperform.
Needham analyst says, "After Total’s (NYSE: TOT) (Not/Rated) tender offer for 60% of SPWRA shares is completed on June 14, we expect the remaining 40% of shares to trade lower due to: 1) post tender offer, SPWRA will have the highest P/E multiple of the group; 2) we see downside risks to 2011 EPS guidance; and 3) we see increased competition for high-efficiency products pressuring its price premium. SPWRA has outperformed its peer group since announcing the tender offer (declining just 4% vs. TAN [N/R] down 20%). We expect weak sector fundamentals to weigh on its revenue and margins, resulting in lower share price."
For more ratings news on SunPower click here and for the rating history of SunPower click here.
Shares of SunPower closed at $20.95 yesterday.
Needham analyst says, "After Total’s (NYSE: TOT) (Not/Rated) tender offer for 60% of SPWRA shares is completed on June 14, we expect the remaining 40% of shares to trade lower due to: 1) post tender offer, SPWRA will have the highest P/E multiple of the group; 2) we see downside risks to 2011 EPS guidance; and 3) we see increased competition for high-efficiency products pressuring its price premium. SPWRA has outperformed its peer group since announcing the tender offer (declining just 4% vs. TAN [N/R] down 20%). We expect weak sector fundamentals to weigh on its revenue and margins, resulting in lower share price."
For more ratings news on SunPower click here and for the rating history of SunPower click here.
Shares of SunPower closed at $20.95 yesterday.
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