SunPower Corp Receives a Hold from J.P. Morgan

By Jason Carr

J.P. Morgan analyst Paul Coster reiterated a Hold rating on SunPower Corp (NASDAQ: SPWR) today and set a price target of $11. The company’s shares opened today at $6.52, close to its 52-week low of $6.

Coster commented:

“SPWR posted solid 3Q results owing to sale of the Henrietta project to 8Point3, however the near-to-medium prospects remain challenging owing to weak PPA pricing and slowing distributed solar growth. The company is restructuring and refocusing in readiness for a protracted slowdown in 2017, maximizing cash generation in 2017 off a lower opex run-rate, with a review to returning to growth in 2H17. Further details will be issued on December 7 th but 2016 revised guidance calls for a very weak 4Q, which we expect to weigh on the stock. We are adjusting estimates to align with commentary, though visibility is very poor at present. Maintain Neutral.”

According to TipRanks.com, Coster is ranked 0 out of 5 stars with an average return of -5.9% and a 44.9% success rate. Coster covers the Technology sector, focusing on stocks such as Trimble Navigation Limited, SolarEdge Technologies, and Daystar Technologies.

SunPower Corp has an analyst consensus of Hold.

The company has a one year high of $31.10 and a one year low of $6. Currently, SunPower Corp has an average volume of 3.41M.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is neutral on the stock. Most recently, in May 2015, Patrick Wood, a Director at SPWR sold 6,000 shares for a total of $192,240.

SunPower Corp. provides solar products and services. It operates through three business segments: Residential, Commercial and Power Plant. The Residential segment refers to sales of solar energy solutions to residential end customers. The Commercial segment refers to sales of solar energy solutions to commercial and public entity end customers. The Power Plant segment refers to solar products and systems business. SunPower was founded by Thomas L. Dinwoodie, Robert Lorenzini and Richard M. Swanson in April 1985 and is headquartered in San Jose, CA.