SunPower Corporation (NASDAQ: SPWRA) has already taken a licking and its lowered guidance is not helping. Ditto for an analyst downgrade. JP Morgan dropped the stock from “Overweight” to its least desirable “Underweight” rating. Jefferies has managed to maintain a “Buy” rating but did cut estimates and the price target.
JPMorgan cut its price target from from $28.50 to $15.00. Jefferies cut its target to $40.00 from $50.00. In January, SunPower guided 2009 EPS to $2.20-$2.80. The JPMorgan analyst now sees the company’s EPS at $0.56. Now that’s a significant difference.
Citigroup recently cut its target to $15.00 from $23.00.
The inability of individual and corporate consumers to get financing to help with the purchase of solar panels is a major constraint on the solar industry. SunPower is not immune to that illness. The company is facing a downturn in its European business as well. And now solar has to compete with much more reasonable traditional power prices.
The company’s shares are taking a beating again today with a drop of more than 5% to $22.75. While this is not a 52-week low as its bottom was $18.50, SunPower is down from a 52-week high of $107.00.
Paul Ausick
March 12, 2009
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
