Cowen’s Stone Maintains Outperfom on SunPower - Notes Reset In Guidance Should Not Surprise

Apr 22, 2009
Author: SCP Editor

April 22, 2009 – Analyst Comments – Cowen’s Robert Stone weighed in on SunPower (Nasdaq:SPWRA) this morning commenting that “Another Guidance Reset Shouldn’t Surprise.” He maintained an OUTPERFORM rating on the stock, noting that “trading below 10x our 2010E cash EPS we see 50% upside in SPWRA shares vs. the market in 12 months and recommend investors take advantage of any pullback following Q1 results.

Key Takeaways

·         Modeling cash EPS of $0.23 on revenue of $260M, estimated that blended ASP declined about 14% Q/Q, and expects a “steep drop in systems revenue” of 59% to account for most of the Q/Q decline in sales;

·         Expect continued investment in developing the utility business segment

·         A 10-20% reset on guidance should not be that much of a surprise to investors

·         SPWRA should be well positioned for US programs next year and beyond including both distributed rooftop generation and RPS driven utility projects

·         Maintains OUTPERFORM rating