Sunpower (SPWRA,SPWRB): Collins Stewart Issues Sell Rating, Broadpoint Downgrades to Neutral

A couple of analyst notes out this morning on Sunpower (SPWRA) according to

Collins Stewart has initiated coverage on Sunpower with a Sell rating and a price target of $20 due to the following:

– rapid price deterioration
– trading at premium valuation relative to its peers
– production costs higher than competitors
– key financial metrics related to asset and capital efficiency below that of peers

Broadpoint downgraded to Neutral and lowered the price target from $36 to $25

Analyst John Hardy said, “Following the most recent guidance for Q109, implications are for 85% of FY09 revenue to come from April – December. While 2H loaded years are not atypical in solar given German seasonality, this certainly increases the likelihood of a reduction in FY09 guidance. We are awaiting FY09 and FY10 consensus estimates to decline before turning more positive. That being said a difficult 1H09 is largely baked into investor expectations.

The stock is holding up quite well today, off just 3% with little sell volume.

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