Though SunPower (SPWR -13.6%) beat Q2 estimates on the back of better-than-expected margins, and raised its 2013 EPS guidance well above consensus, light revenue figures helped spark a selloff. Also, investors may have decided SunPower's good news was more than priced in following a huge 2013 run-up.
Cowen notes SunPower's capacity is fully booked through 2014 and thinks production could grow 20% next year, and Northland expects China's aggressive 2015 solar installation targets to yield strong non-Chinese demand for firms based elsewhere. Lazard is upbeat about European margin expansion and Asia-Pac growth, and Citi observes SunPower's ties to majority owner Total are yielding international deals.
Credit Suisse, echoing concerns raised about First Solar, is worried "new utility-scale projects are likely to have lower margins than the current pipeline." Goldman argues a premium valuation and softening earnings growth "suggest headwinds to further upside."