Cowen Boosts PT on SunPower (SPWR) to $50; Sees Multiple Advantages vs. Peer Group

Cowen and Company raises price target on SunPower (Nasdaq: SPWR) from $40 up to $50 and maintains an Outperform rating on the stock.

Analyst Robert Stone commented, Investor interest in YieldCos points to strong demand for high-quality project assets. SPWR modules have superior power output over time, thanks to unique architecture that reduces common failure modes. Whether SPWR ultimately forms an internal YieldCo, or sells to others, we expect it to enjoy higher retained value for projects.

Stone also believes the U.S.-China trade barrier may lead to increased U.S. market share as capacity ramps higher.

SunPower also has the broadest channel and geographic exposure. Stone said, The ability to allocate across utility scale, commercial and industrial DG, and residential rooftops should help overall margins and mitigate lumpiness from larger projects. Geographic exposure includes the fastest growing large markets (China, U.S., Japan) along with emerging geographies such as South America and the Middle East. The C7 tracker technology is well suited to local content partnerships, such as the China JV.

The recent $400MM 0.875 percent convert offering, in which Total bought $250MM of principal, as well as the $200MM residential loan program with Admirals Bank, point to strong financial backing. We believe SPWR enjoys the flexibility to hold projects on the balance sheet and offer system customers several choices of financing, Stone concluded.

For an analyst ratings summary and ratings history on SunPower click here. For more ratings news on SunPower click here.

SunPower closed at $37.06 yesterday.

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