FBR Capital lowered its price target for SunPower (SPWRA) this morning from $33 a share to $28 a share on concerns about the “severe decline” in the average selling price of solar modules.
FBR said it would be more positive about SunPower’s prospects if the company changed a few things. Targeted operating and gross margins need to be lowered to be closer in line with reality. FBR would like clarity on the mix of projects that SunPower will finance versus receive third party financing. FBR also has doubts about the U.S. market exceeding 1GW for 2010.
FBR thinks that SunPower could be burning cash for an undetermined period of time. Yesterday, FBR released a similarly downbeat note on First Solar (FSLR).
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