SunPower (SPWRA) Stock Heating Up as Barron's Gets Bullish
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Shares of SunPower (Nasdaq: SPWRA) are moving higher this morning following a bullish Barron's piece which is being highlighted as the publication's top article for today. The stock is currently up 8.5% to $35.46.
The Barron's article places SunPower in a different arena than most other solar stocks, saying the company "is starting to see a new dawn" while competitors are continuing to falter. Barron's believes SunPower's recently announced better-than expected Q4 earnings strengthen this claim, showing that the company can "survive and grow" in this extremely difficult economic environment.
The article points out that SunPower has an advantage when it comes to estimating solar demand given that the company has a large network of dealers who distribute directly to end-users. Also, with tax credits coming to utility companies by 2010, SunPower will be adopting a new growth driver as the majority of its earnings presently come from residential consumers.
SunPower's margins are expected to improve this year too, according to Barron's, as the price of polysilicon has fallen from around $400 per kilogram in the summer to around $100 today. Finally, as SunPower's solar-panels are thee most efficient in the world, in contrast to First Solar's (Nasdaq: FSLR) lowest-cost panels, Barron's notes that fewer panels take up less space and "also translate into lower installation and maintenance costs."
The Barron's article places SunPower in a different arena than most other solar stocks, saying the company "is starting to see a new dawn" while competitors are continuing to falter. Barron's believes SunPower's recently announced better-than expected Q4 earnings strengthen this claim, showing that the company can "survive and grow" in this extremely difficult economic environment.
The article points out that SunPower has an advantage when it comes to estimating solar demand given that the company has a large network of dealers who distribute directly to end-users. Also, with tax credits coming to utility companies by 2010, SunPower will be adopting a new growth driver as the majority of its earnings presently come from residential consumers.
SunPower's margins are expected to improve this year too, according to Barron's, as the price of polysilicon has fallen from around $400 per kilogram in the summer to around $100 today. Finally, as SunPower's solar-panels are thee most efficient in the world, in contrast to First Solar's (Nasdaq: FSLR) lowest-cost panels, Barron's notes that fewer panels take up less space and "also translate into lower installation and maintenance costs."
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