Science & Technology
Science and Technology
Science and Technology 
Fri, February 27, 2009
Thu, February 26, 2009
Schaeffer's Street Stories: SunPower Corp. Faces Steady Decline as Analysts Reevaluate Bullish Positions
CINCINNATI--([ BUSINESS WIRE ])--Shares of SunPower Corporation (NASDAQ: SPWRA) plunged more than 8% yesterday, as traders reacted negatively to a warning from solar-sector peer First Solar (NASDAQ: FSLR). As part of its fourth-quarter earnings report, First Solar warned that the short-term outlook for the solar industry has never looked more difficult, with a "serious risk" of oversupply in the market. However, at least one analyst apparently saw potential for SunPower in the wake of this negative reaction within the solar sector.
Earlier this morning, UBS upgraded SPWRA to "neutral" from "sell." Checking in with the rest of the analyst community, UBS' upgrade doesn't seem like that big of a stretch for the brokerage firm. Currently, SPWRA has acquired 9 "buys," 7 "holds," and 2 "sells," according to Zacks. This bullishly skewed ratings configuration is backed by equally optimistic price targets. Specifically, Thomson Reuters reports that the average 12-month price target for SPWRA rests at $40.06 per share, implying that analysts are expecting the shares to rally more than 33% during the next 52 weeks.
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