UPDATE: Credit Suisse Downgrades SunPower (SPWR) to Underperform
- Tech stocks push S&P 500 to record close, buoy Nasdaq
- U.S. Calls for Pause of J&J (JNJ) Vaccine After Clotting Cases, Including One Death
- Coinbase (COIN) direct listing IPO reference price set at $250
- Biggest SPAC Deal Ever: Grab To Go Public in a $40 Billion Merger With Altimeter (AGC), Backed by Fidelity and BlackRock
- Oil rises after robust China data but J&J vaccine pause weighs
Credit Suisse analyst Michael Weinstein downgraded SunPower (NASDAQ: SPWR) from Neutral to Underperform with a price target of $23.00.
The analyst comments "Bottom line - downgrade to Underperform on valuation, with margin improvement that could slow down in late 2021/22 due to rising rates. Every 100bps increase in rates reduces NPV per customer by ~30%, reducing upside to 2022 EBITDA guidance. Our TP of $23 is unchanged and based on 13.5x 2022 EBITDA estimate, at top end of development engine multiple for peers that embeds a 5% asset discount rate. The Street at ~$38 trades closer to residential inverter comps and either bakes in a lower cost of capital (4%), or a higher probability of ITC extension, or higher growth beyond 2022 (which we believe is unlikely as company matures in 2022), or assumes storage growth opportunities in C&I (which is still a few years away)."
Shares of SunPower closed at $37.76 yesterday.
You May Also Be Interested In
- UPDATE: BofA Securities Downgrades Lucira Health Inc. (LHDX) to Underperform
- UPDATE: CIBC Starts Gatos Silver (GATO) at Outperformer
- Air Canada (AC:CN) (ACDVF) PT Lowered to Cdn$29 at Scotiabank
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades, Hot Downgrades
Related EntitiesCredit Suisse
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!