SunPower Corporation (NASDAQ:SPWR) stock has been assigned a consensus rating of Hold by 17 analysts, out of which 8 analysts rated the stock Hold and seven issued a Buy rating. Overall, analysts have a 12 month price target of $29.08 on SunPower.
Analysts rate SunPower a Buy
Analysts at Deutsche Bank raised their rating on the stock from Hold to Buy in a research note to investors on Wednesday. They assigned a price target of $38.00 on the stock, a decline from the previous target of $33.00. Bank of America analysts have upgraded the share from Underperform to Buy in a research note issued to investors on Wednesday. Price target on the stock is $37.00, an increase from $21.00 previously. Brean Capital initiated coverage on the shares of SunPower Corporation (NASDAQ:SPWR) and assigned a Buy rating to the stock with a price target of $32.00, in a note issued on Monday.
SunPower Corporation (NASDAQ:SPWR), which is one of the largest solar companies in North America achieved the target of lowering the cost by enhancing conversion efficiencies of its panel and better balance of system costs for its power plant blocks. In fiscal 2013, SunPower reduced its panel manufacturing cost by around 20% along with lowering the balance of systems costs by approximately 24%.
Q1 earnings expected to improve
SunPower Corporation (NASDAQ:SPWR) is all set to post its first quarter 2014 results on April 24, where the earnings are expected to improve on a year over year basis on the back of higher global demand for solar products and manufacturing cost improvements.
For the fourth quarter of 2013, the company posted earnings per share of $0.47, above the consensus estimates of $0.28. Revenue for the quarter came in at $758.00 million, above the consensus estimate of $707.93 million. In the fourth quarter, operating margins surged around 9.5% from 7.4% a year ago.
A recent report from Goldman Sachs stated that installations of utility-scale solar projects in the U.S. will increase around 8% from 2013 to 2016, and the rooftop market will grow at a rate of approximately 45% over the same period. This implies that SunPower Corporation (NASDAQ:SPWR) will have to increase its residential and commercial installations in the United States to increase its earnings. Margins were not satisfactory for SunPower Corporation (NASDAQ:SPWR) in Europe, the Middle East and Africa in the previous year due to lower subsidy in some important markets and non-optimal utilization charges related to some manufacturing facilities in EMEA.