North Coast Solar Stocks

September 14, 2009

SunPower shares drop as analyst downgrades stock

Filed under: SPWR — Tags: , , , , — Jason @ 11:54 am

Analyst downgrades SunPower on fewer-than-expected contracts with utilities; shares tumble

Monday September 14, 2009, 11:54 am EDT

NEW YORK (AP) — Shares of SunPower Corp. (SPWRA, SPWRB) tumbled on Monday as an analyst downgraded the solar-electric systems maker, citing weaker-than-expected sales to utilities.

SunPower shares fell 98 cents, or 3.4 percent, to $28.17 in morning trading.

Raymond James analyst Pavel Molchanov said he has been disappointed by the company’s lack of major contract wins in the utility arena. He had expected SunPower’s strength in photovoltaic systems to bolster performance as utilities increasingly adopt the technology.

“While SunPower’s long-term potential in this arena remains greater than that of the vast majority of its competitors, our conviction in the story has diminished,” Molchanov said. He lowered his rating to “Outperform” from “Strong Buy.”

Molchanov also reduced his price target for the stock to $35 from $37.

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