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On Wednesday, Deutsche Bank upgraded shares of SunPower Corporation
SPWR from Hold to Buy and raised the price target from $33 to $38. The upgrade
Analyst Vishal Shah's upgrade is based on five reasons:
- Less dependent on China demand for earnings.
- Well positioned to benefit from ongoing strength in Japanese market.
- ”Cost reduction progress appears to be ahead of schedule with Oasis cost reduction ~1 year ahead of schedule,” the analyst said.
- Demand for yieldco ready projects is very strong according to channel checks.
- Additional upside could be provided from increased leasing capacity along with other international markets.
According to Shah, SunPower “has ~4+MWac of unbuilt utility scale project backlog which can drive incremental $0.60+ EPS accretion in 2015/16.” In addition, “ongoing financing capacity ramp should drive $0.50-0.60 EPS in tax/depreciation monetization in 2015, while margin growth and increased shipments across EMEA/APAC regions should drive ~120% EPS growth to $0.60,” said Shah.
Shares of SunPower are up 7.4 percent to $31.47. The stock is also getting a big boost from news that Google
GOOGwill commit to a $100 million residential solar lease deal.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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