Seeking Alpha

SunPower falls on JPMorgan downgrade

  • Arguing shares are fully valued following a 35% YTD run-up, JPMorgan has cut SunPower (SPWR -3.3%) to Neutral. Its PT is at $40.
  • Yesterday, SunPower took part in a a solar rally sparked by SolarCity and Yingli. Shares go for 23x 2015E EPS, and 1.8x 2015E sales.
Comments (7)
  • clack
    , contributor
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    oh, and how does JPM feel about SCTY? Perhaps they can come out with a "fully valued" at $15 price target. because if SPWR is fully valued at $40 then SCTY is severely overpriced right now. Well, SPWR was due for a pause anyway. I'm not intending to bash SCTY here. I just think that SPWR has much more value for investors at current prices even after the sector run-up then most solar alternatives.
    18 Jun 2014, 11:15 AM Reply Like
  • sunwindgeo
    , contributor
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    I agree clack, check out the disclosure page for JPM. You will see the whole story there..

     

    I find it incredible that JPM pushed Sunpower down a notch just one day after a major disclosure by SolarCity. They are the only ones doing so BTW that I can find. Sunpower should be upgraded..
    18 Jun 2014, 12:16 PM Reply Like
  • sunwindgeo
    , contributor
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    JPM is market maker for SolarCity. That in my opinion relates to their reason for trying to keep SunPower down.

     

    SunPower is their prime competitor.

     

    See: http://bit.ly/1pfUKmU
    18 Jun 2014, 12:16 PM Reply Like
  • clack
    , contributor
    Comments (52) | Send Message
     
    well, that explains a fair bit. makes JPM pretty suspect in their motives regarding Sunpower. I note that SPWR seems to be recovering from the hit as the day goes on. I've traded SPWR in the past but for now it is a long term hold for me.
    18 Jun 2014, 12:53 PM Reply Like
  • sunwindgeo
    , contributor
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    OK, its nerve wracking day anyway. Thanks for reply. I posted about this elsewhere but maybe people are preoccupied. This happens to be an important day for me, I'm deciding whether to stay or go in US markets. Retirement is all about harsh realities, and hard choices.
    18 Jun 2014, 12:57 PM Reply Like
  • clack
    , contributor
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    market having a mild anxiety attack today ahead of the Fed. In my mind having a long term view for a strong solar company that is actually making money as opposed to most is a conservative investment for the sector.
    18 Jun 2014, 01:40 PM Reply Like
  • sunwindgeo
    , contributor
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    That is important to think about clack.
    18 Jun 2014, 01:58 PM Reply Like
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