Friday, October 23, 2009

Cowen Maintains OUTPERFORM Rating on SunPower - “Company Well Positioned” and Pacific Crest: “We Remain Adamant Sellers of SunPower” (SPWRA)

Things that make you say "Hmmm..."
The stock is down $4.40 at $28.90.
Two posts from SmallCapPulse:
Analyst Comments – Cowen’s Stone reiterated his OUTPERFORM rating on SunPower (Nasdaq:SPWRA) stating that the company is “globally well positioned from the residential to utility scale segments.” Stone sees 30%+ upside vs. the market in 12 months for the stock.

Key Takeaways

· The dealer channel drove 11% of Q3 revenue upside, but systems project financing and a liquidation of third party modules weighed on FY guidance

· Believes SPWRA can continue to scale the dealer channel – should enjoy a premium ASP while building the brand

· Some projects slipping into 2010...MORE

Analyst Comments – Pacific Crest’s Mark Bachman reiterated his UNDERPERFORM rating on SunPower (Nasdaq:SPWRA) and sees downside for the stock to $20, on the heels of the company’s earnings report this week. He states “we remain adamant sellers of SPWRA.”

Key Takeaways

· On the surface, Q3 looks impressive, but the quality of the earnings is not (gross margins down 31% Y/Y). Gross margins continue to decline amidst more uncertainty about declining module prices....

... “We believe the stock is worth $20, which is 15x our 2010 EPS estimate of $1.31.”...MORE