SunPower Corp. is up around 7% today on its new raised outlook.
The company expects to see revenue growth for the year around $2.8 billion.
The stock posted better-than-expected earnings with fourth-quarter revenue increasing by 69% to $937.1 million.
It expects residential demand in the U.S. to grow and financing for its CVSR project to help shares increase.
However many analysts are predicting low demand for the solar industry
- Italy, which has been a huge player in the solar market, has put more restrictions on solar installations which could crush pricing and margins in the second half of this year and beyond
- Government support for solar subsidiaries have been cut in France and Germany and this may happen in more European countries because of budget pressure.
- Many of the large solar companies in the U.S. are encouraging investors to believe that the federal government will be supportive of more solar module growth than ever before but analysts at Wunderlich Securities don’t think this will happen. “If the market figures that out, U.S. solar stocks could be in for a major correction,” wrote analysts in a research note this morning.
- China could potentially increase solar demand but that would most likely only benefit domestic companies, according to Wunderlich.
- However both Barclays and Wunderlich gave SunPower a positive rating and said it was well positioned for growth in the U.S. market.