- SunPower's (SPWR -4.7%) new restructuring plan is indicative of worsening solar photovoltaic market fundamentals, Axiom’s Gordon Johnson says.
- The analyst says SPWR thinks the U.S. residential market has “corrected” while he believes the correction seems “far from over," manufacturers continue to expand capacity causing price competition that is driving ASPs to new lows, lower cost targets translate to lower growth given the capital intensity of SPWR's PV projects.
- Johnson has Sell ratings on SunEdison (OTCPK:SUNEQ -5.8%), JA Solar (JASO -4%), Trina Solar (TSL), Yingli Green Energy (YGE -3.1%) and SolarEdge (SEDG -2.1%).
- Morgan Stanley says it remains cautious on the 2017 outlook given limited indications of a PV industry recovery, also noting that SPWR did not provide margin or EBITDA targets and said it would focus on maximizing cash flow and liquidity rather than to growth; the firm rates SPWR at Equal Weight with a $6 price target.