Before the closing bell yesterday, Kaufman Bros reiterated its Buy rating on Sunpower (SPWRA) despite the accounting issues weighing on the stock.  You have to admire Kaufman’s conviction when every other analyst immediately issued sell ratings.  I think it’s too soon to be jumping in to SPWRA, but once this blows over, it could offer one heck of a long term entry point.

Here are the analyst notes courtesy of StreetInsider.com

“SunPower announces accounting irregularities in its Philippines plant…Likely understatement of cost of goods in 2Q09 and 3Q09…Launches internal investigation…While clearly an issue for investors, we believe the company still…makes one of the best solar products on the market.”

“Investment Thesis: Our investment thesis is simple: SunPower has a well deserved reputation for systems design and with First Solar will likely split up the U.S. commercial market. In the residential market, we believe SunPower could take 5x-10x the market share that First Solar may get because it takes twice as much roof surface area of First Solar’s solar panels to produce the same amount of  power as you can get with SunPower panels in half the space. It also has the most efficient solar cells. Space is limited and relative to modules made by First Solar, the #1 U.S. solar cell producer, SunPower modules produce approximately the same amount of energy in half the space. At the moment, SunPower modules cost more, but not much more on a total systems installed basis and because of raw material inputs and technology, the SunPower panels get less expensive every year. All solar cells can be made more efficient, but when you already have the record, it is hard for anyone to catch you. Cell efficiency records are a moving target. Our analysis of these data show that cell efficiencies generally double every 12 to 15 years.”

Shares of Sunpower (SPWRA) are holding the flat line today, but still look poised to major support around 20 before this is all said and done.