Kaufman Bros. Cuts Price Target & Estimates on SunPower (SPWRA) Due to Weak Industry Outlook
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Price: $7.29 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 20
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 20
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Kaufman Bros. is maintaining its Hold rating on shares of SunPower (NASDAQ: SPWRA) following the release of its Q3 results. The firm is also reducing its price target from $10 to $8.
While the company reported better than expected results for its third quarter, its guidance and outlook going into 2012 looks terrible. SPWRA's reported earnings of $0.16 per share on $705 million in sales.
An analyst at Kaufman comments, "We believe SPWRA has a better chance of success given Total's interest and its access to project financing. Therefore, SunPower's projects should be safe, in our view. The company plans to reduce production throughout the remainder of the year and into 2012. Given this, production should be in line with lower demand levels. Unfortunately, we don't think cost reductions will be meaningful enough to offset ASP declines which is effecting the entire industry.
To go inline with current market trends, Kaufman has cut its FY11 sales and EPS estimates from $2.8 billion and $0.86 to $2.5 billion and $0.07. For FY12, the firm also cut its estimates from $3.3 billion and $1.20 to $2.3 billion and $0.08.
For more ratings news on SunPower click here and for the rating history of SunPower click here.
Shares of SunPower closed at $8.76 yesterday.
While the company reported better than expected results for its third quarter, its guidance and outlook going into 2012 looks terrible. SPWRA's reported earnings of $0.16 per share on $705 million in sales.
An analyst at Kaufman comments, "We believe SPWRA has a better chance of success given Total's interest and its access to project financing. Therefore, SunPower's projects should be safe, in our view. The company plans to reduce production throughout the remainder of the year and into 2012. Given this, production should be in line with lower demand levels. Unfortunately, we don't think cost reductions will be meaningful enough to offset ASP declines which is effecting the entire industry.
To go inline with current market trends, Kaufman has cut its FY11 sales and EPS estimates from $2.8 billion and $0.86 to $2.5 billion and $0.07. For FY12, the firm also cut its estimates from $3.3 billion and $1.20 to $2.3 billion and $0.08.
For more ratings news on SunPower click here and for the rating history of SunPower click here.
Shares of SunPower closed at $8.76 yesterday.
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