Buy or Sell? Analysts Weigh In on Sunpower (SPWRA)

The analysts are weighing in on Sunpower (SPWRA) following their earnings report and the analysis is across the board.  Citi is downgrading the stock to Sell and believes this is the last good quarter from the company for awhile!  Ouch.  Merrill Lynch is negative on SPWR as well, downgrading it from Buy to Neutral.

Then there’s Wedbush Morgan, with an against the grain STRONG BUY rating and $100 price target!  Are they all looking at the same company?  One analyst is going to lose all credibility on this so we’ll revisit this post in a few quarters.  The concerns of Citi and Merrill are certainly warranted, but much of this may have already been priced in while Wedbush appears to be overly optimistic. 

JANCO may have the most reasonable call, downgrading from a Buy but to Accumulate and a price target of $60.  “Management continues to execute well in a challenging economic environment characterized by shrinking multiples. In this situation, it is difficult to justify a 30X multiple. For 2009 our revenues estimate declines from $2.07B to $2.04B and EPS decreases from $3.68 to $3.35.”

Update (10/20/08): Societe Generale is upgrading SPWRA from Sell to Hold

More importantly what’s the market think?  SPWRA gapped down at the open but recovered immediately and currently well off the lows.  Anytime a stock remains stable or rises after a sell call, it’s a sign that a bottom may be forming.  There is fairly strong support right around 40, so that’s the line in the sand right now.

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