SunPower (SPWR) has completed the acquisition of Australian integrator and distributor Solar Sales Pty Ltd in a bid to broaden its worldwide customer base. Solar Sales was a SunPower dealer, with 30 offices across Australia. However, FBR was not impressed, even though they don’t have all the details, including the cost. In general, FBR just doesn’t like anything SPWR does:
While we do not know the cost involved in the acquisition, we think this acquisition is made prematurely, given Australia’s small commercial and residential market size (approximately AU$30M/year), driven by the recent reduction in subsidies and a lack of government commitment. We do not see the Australian market as having any significant effect on SunPower’s business, given the music that Conergy recently faced. In fact, the relative shrinkage of subsidy already prompted Conergy to reduce its solar resources and focus more on “wind”!
AmTech, meanwhile is positive on the deal as it helps SPWR’s increasing geographic diversity. The firm, though, does not believe it will meaningfully impact financials or fundamentals until 2H09 at the earliest.
FBR reiterates UNDERPERFORM on SunPower (SPWR), target $65.
AmTech reiterates BUY on SunPower (SPWR).
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