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Deutsche Bank Upgrades SunPower (SPWR) to Buy; Analyst Sees Path to $2 EPS

April 23, 2014 9:21 AM EDT
Get Alerts SPWR Hot Sheet
Price: $2.82 --0%

Rating Summary:
    6 Buy, 23 Hold, 15 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 7 | New: 38
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Deutsche Bank upgraded SunPower (NASDAQ: SPWR) from Hold to Buy with a price target of $38.00 (from $33.00).

Analyst Vishal Shah said, "We believe risk-reward for SPWR shares is becoming more attractive for the following 5 reasons:

1) SPWR's earnings outlook is less dependent on China demand (which is the current source of investor concern) and more influenced by self-developed utility scale projects as well as ~40% capacity expansion through 2016;

2) SPWR is well positioned to benefit from accelerating growth of the US market through 2016 and also benefit from ongoing strength in Japanese market;


3) Cost reduction progress appears to be ahead of schedule with Oasis cost reduction ~1 year ahead of schedule;

4) Checks indicate demand for yieldco ready projects is very strong and SPWR should be able to maximize profitability of the existing ~1GW utility scale pipeline, in our view.

5) Increased leasing capacity along with other international mkts offer additional upside potential."

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 $29.37 yesterday.



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