Goldman Sachs Downgrades SunPower (SPWRA) to Sell
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Price: $7.29 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Goldman Sachs downgraded SunPower (NASDAQ: SPWRA) from Neutral to Sell with a $14 price target, suggesting 34% downside.
The firm cited fundamental and technical risks following the expected close of Total's tender offer.
Goldman sees 22% downside to their $14 6-month price target from the current "stub" (i.e. ex Total) value of $17.88. The "stub" shares will are expected to trade ex-Total on June 15.
Goldman said technically, their analysis of precedent transactions reveals a pattern of underperformance post tender, by an average of 6.2% over the following post three month period. Fundamentally, while the firm believes Total bolsters the long-term strategic and financial strength, these benefits are likely to accrue over time. Meanwhile, they see near- to intermediate-term risk that cost improvements may not keep pace with falling ASPs.
For more ratings news on SunPower click here and for the rating history of SunPower click here.
Shares of SunPower closed at $21.27 yesterday.
The firm cited fundamental and technical risks following the expected close of Total's tender offer.
Goldman sees 22% downside to their $14 6-month price target from the current "stub" (i.e. ex Total) value of $17.88. The "stub" shares will are expected to trade ex-Total on June 15.
Goldman said technically, their analysis of precedent transactions reveals a pattern of underperformance post tender, by an average of 6.2% over the following post three month period. Fundamentally, while the firm believes Total bolsters the long-term strategic and financial strength, these benefits are likely to accrue over time. Meanwhile, they see near- to intermediate-term risk that cost improvements may not keep pace with falling ASPs.
For more ratings news on SunPower click here and for the rating history of SunPower click here.
Shares of SunPower closed at $21.27 yesterday.
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