UPDATE: Bank of America Lowers PT on SunPower Corp from $15 to $14

Bank of America has published a report on SunPower Corp (NASDAQ: SPWRA) lowering the price target from $15 to $14.

In the report, Bank of America wrote, "Pricing and charges drop gross margin After the close, SunPower preannounced a 2Q loss with non-GAAP gross margin falling to 12-13% versus an expected 15-17% and GAAP gross margin fading to 3-4%. Contributing factors include $29 million related to reallocation of panels from utility projects to R&C and $32.5 million from a write down of third-party inventory/contracts. There also is 13 million in expenses for the Total tender offer. Excluding these items, GAAP gross margin likely would have been 10-12% versus our expectation of 14%. Revenue is expected to come in near the top end of guidance at $590-595 million, so unit sales may have overachieved though at disappointing prices in Germany and Italy."

Bank of America rated SunPower Corp an Underperform with a price target of $14.00. SunPower Corp closed Monday at $20.88.