UPDATE: Credit Suisse Downgrades SunPower (SPWR) to Underperform

February 22, 2021 4:32 AM EST
Get Alerts SPWR Hot Sheet
Price: $28.55 +1.24%

Rating Summary:
    10 Buy, 22 Hold, 10 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 17 | New: 52
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(Updated - February 22, 2021 4:59 AM EST)

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)."

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 $37.76 yesterday.


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