Auriga Upgrades SunPower (SPWRA) to Hold; Near-Term Concerns Remain, But 40% Drop to Big to Ignore

Auriga upgraded SunPower (NASDAQ: SPWRA) from Sell to Hold, maintains price target of $14.00.

Auriga analyst says, "SunPower's Class A stock price compression at ~40% since July 25 is reflective of an earnings miss by a wide margin, near-term inflexibility in cost structure, and global macroeconomic concerns...Investor perception that parent Total SA's (60% owner of stock) tender offer price of $23.25/share earlier this year as a floor on the stock was flawed as it embedded a large control premium."

"We maintain our price target but upgrade the stock only to Hold pending a more drastic action from SunPower in addressing its misaligned cost structure amidst continued solar industry pricing pressure."

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

Shares of SunPower closed at $13.57 yesterday.

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