SunPower Priced Too High Ahead Of Earnings Says FBR

For the second time in two weeks, FBR Capital is reducing its estimates for SunPower (SPWRA) citing lower than expected shipments in the first half of the year, and competition putting pressure on Sunpower’s prices.

Suntech Power (STP) is aggressively cutting price to grab a larger slice of the U.S. market away from competitors like Sunpower, says FBR in a note published this morning. This is putting pricing pressure on SunPower. SunPower still sells at a premium, but that premium has declined.

While the sentiment amongst investors is negative, FBR doesn’t think it is negative enough and says that it expects solar stocks, but to a less extent SunPower, to give back gains picked up in the past few months.

FBR has a $23 price target on the stock, down from $28. The stock currently sits at $26.45. Here’s their estimates ahead of SunPower’s earnings after the close on Thursday:

  • $.17 EPS pro forma, $.01 EPS GAAP
  • Revenue: $268.5 million
  • Net Income: $1 million

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