Yingli Green Energy, Trina Solar Prelim. Q1 Numbers Shouldn't Impact SunPower's (SPWR) Results - Cowen (TSL) (YGE)

Cowen and Company is bullish on SunPower (Nasdaq: SPWR) heading into the company's Q1 report, which is expected out after markets close on April 24th.

Analyst Robert Stone sees SunPower posted Q1 EPS of $.32 with revs of $675 million, jyust about the midpoint of the company's recent guidance.

Stone commented, ...we believe upside is achievable, based on strength of U.S. DG and residential leasing, plus a seasonally strong, high-ASP market in Japan. Preannounced lower Q1 shipments by Yingli Green Energ (NYSE: YGE) and Trina Solar (NYSE: TSL) should not be negative for SPWR, which enjoys more diverse channels and segments. Given capacity constraints, SPWR is unlikely to have exceeded the upper end of 320-350MW shipment guidance, but should have been able to focus on the best ASPs and margins.

While higher estimates could come following Q1 results, Stone sees the company waiting until after Q2 before hiking guidance. The analyst commented, We believe the market will remain strong over a multi-year cycle, and continue to diversify. Ample poly supply and the benefits of scale should keep ASPs stable, and growing confidence should attract more financial partners. Although China was apparently below the lofty Q1 expectations of some market players, the 14GW full year target remains, and we anticipate the same or higher in 2015. U.S. rooftop, global distributed generation, and grid parity opportunities should be additional drivers.

Cowen has SunPower at Outperform with a target price of $40.

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

Shares of SunPower closed at $26.53 yesterday.

You May Also Be Interested In

• Evercore ISI Downgrades SunPower (SPWR) to In Line
• Invesco (IVZ) PT Lowered to $17 at BMO Capital
• AGNC Investment Corp (AGNC) PT Lowered to $10.25 at Jones Trading