Credit Suisse recommends buying SunPower (SPWR), following channel checks at InterSolar 2008. The firm believes pricing and demand risks have been mitigated.
Despite weakening demand in Spain in the second half of the year, CS sees areas for SPWR to pick up the slack: “global demand is tracking much better than expected due to strength in Italy and other geographies.”
CS is also optimistic that solar panel price declines will be less than feared. The firm sees less than “5% panel price reductions in 2H08, vs our prior concerns of 5-10% declines.”
Credit Suisse upgrades SunPower (SPWR) from Neutral to OUTPERFORM, target price $100.
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