Rating on SunPower (SPWRA) Gets the Scalpel

Increasing turmoil in the solar industry has mixed ratings on companies at best at this time, and the darling sector of the media isn't looking like it did several years ago, as demand is shrinking and a sustainable consumer market doesn't exist. Sunpower (NASDAQ:SPWRA) is the latest to get a downgrade from an analyst.

ThinkEquity’s Colin Rusch recently downgraded his rating on the company from a "Buy" to a "Hold," while also cutting his price target on it from $22 to $19.

In its recent quarterly report SunPower lowered its revenue guidance for the current quarter. It will also revise its full year projections in the latter part of the quarter.

Rusch noted, “While we are bullish on SunPower’s position and believe the company is executing well on its cost reduction and should benefit from the flexibility of its business model as the solar industry rationalizes, we are lowering estimates for 2011 and 2012 to reflect a more cautious outlook.”

EPS estimates for 2011 were slashed from $2.15 before to $1.13, and his revenue estimate from $2.86 bllion to $2.44 billion.

SunPower closed Monday at $21.11, down $0.12, or 0.57 percent.