North Coast Solar Stocks

August 14, 2009

SunPower: Needham Launches Coverage With Buy Rating

Filed under: SPWR — Tags: , , , — Jason @ 10:46 am

Posted by Eric Savitz

Needham analyst Y. Edwin Mok this morning launched coverage of SunPower (SPWRA, SPWRB) with a Buy rating and a $36 price target. “By taking a comprehensive approach in providing solar power solutions, we believe the company has developed several sustainable competitive advantages over the long run,” he writes. “Despite having higher manufacturing costs than some of its competitors, we believe gross margins will remain stable due to SunPower’s strong pricing power and its cost reduction road map. With more operating leverage, we believe a recovery in [the second half] and strong growth in the U.S. market in 2010 will propel shares higher.”

Despite the positive note, SPWRA today is down 33 cents, or 1.2%, to $27.99.

Needham’s enthusiasm for SunPower is in stark contrast to this week’s call on the stock by Merrill Lynch, which downgraded the stock to Underperform, asserting that the stock is too expensive.


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