Deutsche Bank is upgrading  SunPower (SPWRA) to Buy this morning and raising the price target from $28 to $31.

Hat tip to StreetInsider.com for the following analyst comment:

“We are upgrading SunPower to Buy based upon earnings power (valuation), anticipated industry growth, and SunPower’s market position. We were disappointed with the company’s 3Q09 margin performance, and while we believe margin improvement can come as factory utilization climbs in 4Q09 and through 2010, we have chosen to model conservatively. With ~20% GM through 2011, we believe SunPower can earn ~$2.30 in 2011, and upgrade to Buy. The bearish argument on SunPower is that the company can hardly match the Chinese on module manufacturing cost/Wp. While there is a large measure of truth to this, winning in the Solar PV industry is more about the cost of energy delivered, and in this arena, SunPower can effectively compete. We believe the company’s products, systems business, and market strategy will enable the company to outgrow the market…We value the stock at $31 or ~15x our discounted, ongoing C2011E EPS of $2.30 (i.e. $2.04), toward the low-end of our valuation range for higher quality solar PV stocks.”