Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Akanksha Bakshi

Why SunPower Shares Are Trading Lower Today

  • Wells Fargo analyst Michael Blum initiated coverage of SunPower Corp (NASDAQ:SPWR) with an Underweight rating and a price target of $17.
  • SPWR is a pure-play residential solar provider with over 444K customers.
  • The analyst mentions that SPWR's largely new management team has pivoted its focus to customer service, with plans to increase offerings and revenues per customer. SPWR employs primarily a direct sales model, which generates strong revenues and FCF, he added.
  • Blum forecasts SPWR to grow revenue at a 10-year CAGR of 14%, driven by an acceleration of solar deployments.
  • The analyst is optimistic about residential solar's long-term prospects, citing an enormous growth runway (only 4% penetration) and enhanced pricing power as electricity rates rise at an accelerated rate.
  • Blum believes SPWR's predominantly direct sales business strategy is more vulnerable to a potential economic slowdown than residential solar provider peers with a higher mix of recurring revenue.
  • Price Action: SPWR shares are trading lower by 10.52% at $15.18 on the last check Wednesday.
  • Photo Via Company
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.