SunPower (SPWRA) will use tomorrow’s earnings report to reset investor expectations, writes Jefferies in a note.
Even if the company lowers its guidance for 2009, Jefferies thinks the impact could be mild or positive, so long as they are “convincing” in their guidance.
While the chatter around alternative energy is getting more positive, most analysts expect the second quarter to be brutal. Jefferies is no exception. It cites the softness in Germany and other markets as a potential concern. Though it says SunPower “still has one of the best business models with a well integrated downstream presence and
perhaps the best developed distribution network.”
SunPower, who charges a premium price for its panels, is under pressure from competitors that are slashing their prices. Jefferies expects this problem to be addressed during the call tomorrow.
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