Bull Of The Day: SunPower Corp.
By Zacks Investment Research on May 13, 2009 | More Posts By Zacks Investment Research | Author's Website
SunPower Corp.’s (SPWRA) geographically diversified fortunes appear greener given the very high growth potential in the alternative energy industry — specifically solar power energy, higher captive generation of panels, rising average conversion efficiency, declining silicon cost and assured silicon supply.
In addition, U.S. RPS requirements, the stimulus plan and an ITC grant will keep the growth story intact. In the short run, however, performance will be affected by tepid demand resulting in lower ASPs leading to higher inventory levels.
Accordingly, with a hybrid outlook and growth, we maintain our BUY recommendation on SPWRA common stock with a six-month target price of $33.50. Price appreciation to our near-term target price represents 21.0% upside potential.

