Morgan Stanley Raises SunPower Price Target
In a note out Wednesday, Morgan Stanley analyst Timothy Radcliff increased his price target on SunPower Corporation (NASDAQ: SPWR) to $45, maintaining an Overweight rating.
Radcliff feels a Joint YieldCo between SunPower and First Solar, Inc. (NASDAQ: FSLR) would be better than a standalone SunPower company. First Solar and SunPower are in advanced talks to create a joint Yield Co, which would generate growth based on drop-downs from both companies. Although the structure is different than he expected, increased value capture from developed projects is his important takeaway.
Radcliff goes on to note, "Increasing PT to $45. We are transitioning our valuation framework to account for 100% probability that SunPower launches a Yield Co, and increasing our PT to $45. Although our framework does not yet reflect true economic split between the two, we believe our model does a reasonable job of capturing value.
"SunPower remains our top pick among solar developers, with more than 35% upside to our $45 PT from Tuesday's closing price of $33. In addition to the upside afforded by the joint Yield Co, we believe the company's differentiated technology will continue to differentiate SunPower's offering in the marketplace."
Latest Ratings for SPWR
|Oct 2016||Deutsche Bank||Maintains||Hold|
|Sep 2016||Williams Capital||Initiates Coverage on||Hold|
|Sep 2016||JMP Securities||Initiates Coverage on||Market Underperform|
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