Baird raises SunPower Corporation’s price target to $42, maintains Outperform
In a report published today, Baird increased the price target on SunPower Corporation (SPWR) to $42 from $38 after meeting with the management. It maintained its “Outperform” rating on shares of SPWR.
“We believe SPWR is well positioned to move into new markets and are increasingly confident in our 2015 estimates. We are expanding our multiple based several upcoming catalysts, including continued cost reductions and fab 4 completion, new project announcements, and potential issuance of an ABS and/or a yieldco. SPWR remains our favorite long-term solar investment” Baird said
“We have expanded our multiple from ~22x as SPWR continues to distinguish itself through expansion in international markets, customer diversification, strong distribution network, and global partnerships. While a premium to FSLR, its closest comp (~16.0x), we think it’s valid given SPWR’s ability to address all segments of the solar market, its growing leasing business, premium technology, and Total backing.” it added
Shares of SunPower Corporation (SPWR) closed at $33.15 on Friday.
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