Friday, November 19, 2010

SunPower's (NASDAQ:SPWRA) Cost Structure Up Against Peers

SunPower (NASDAQ:SPWRA) has cost challenges in relationship to its competitors, moving Wedbush to downgrade the solar company from "Neutral" to "Underperform."

The overall solar industry is taking a hit as supply and demand continues to sort itself out as the German market is overly relied upon at this time.

Wedbush said, "We are downgrading SunPower shares following disappointing 2011 guidance issued Thursday in conjunction with the company’s analyst event. We remain concerned about SunPower’s cost structure relative to industry peers. While we expect SunPower may continue to enjoy its first mover advantage in the systems business in the short term, we believe systems business margins will come under pressure over time as competitors move downstream. We expect new entrants into the commercial and utility markets in Europe and the U.S. will attempt to capture market share using lower cost panels."

Sunpower was trading at $12.39, falling by $0.81, or 6.14 percent at 1:35 PM EST. Wedbush lowered their price target on them from $11 a share to $7 a share.

1 comment:

Joseph Hogan Wilks said...

You need to be careful reading these charts, If you invest in the wrong stocks, you'll be calling the moving company in no time. Take the time to learn how to assess it properly, and you will be a much happier investor.