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SunPower Corporation (SPWR)

- NASDAQ
  • Tue, Jan. 13, 9:52 AM
    • Citing its recent selloff - shares have fallen 37% over the last four months - Credit Suisse's Patrick Jobin has upgraded SunPower (NASDAQ:SPWR) to Outperform, while keeping his $37 target intact.
    • Though believing Japanese solar policy changes and low oil prices act as headwinds, Jobin notes SunPower has less than 15% revenue exposure to Japan, and that oil only accounts for 1.5% of all electricity production in key markets.
    • Last week, Deutsche called SunPower one of its top solar picks, while generally pounding the table for the industry.
    | 1 Comment
  • Thu, Jan. 8, 1:15 PM
    • Deutsche's Vishal Shah, bullish on solar for a long time, asserts the "recent volatility in solar stocks, driven largely by oil price weakness, presents an attractive entry point for investors as we expect 2015 to be a year of stable industry pricing and accelerating volume growth."
    • Shah expects solar to see a "balanced supply/demand outlook as strong demand from the US and improving demand from China/other emerging solar markets offsets any potential demand weakness in the UK/Japan."
    • He observes oil accounts for just ~5% of global electricity output, and sees both solar project pipelines/margins and module margins rising in 2015. Tariffs against Chinese module vendors are expected to be "completely removed."
    • His top picks are SolarCity (SCTY +3.3%), SunEdison (SUNE +4.1%), SunPower (SPWR +6.1%), and Vivint (VSLR +0.3%); the first three are faring quite well today. Yingli (YGE +0.2%), however, has been downgraded to Hold due to balance sheet and financial flexibility concerns.
    • Other major gainers: FSLR +3.9%. JKS +6%. ENPH +5.4%. CSIQ +3.7%. RGSE +5.2%. TERP +3.2%.
    • SunEdison announced today it has bought new wind turbines that will allow it to build up to 1.6GW of wind projects that qualify for U.S. tax credits. The purchase follows the company's $2.4B deal to buy project developer First Wind.
    • ETFs: TAN, KWT
    | 49 Comments
  • Tue, Jan. 6, 2:47 PM
    • The broad Monday selloff in solar names that accompanied WTI crude's plunge towards $50/barrel has been followed by major Tuesday losses (TAN -2%) as WTI falls by another $2.34 to $47.70/barrel.
    • Brent crude is down by $2.44 to $50.67/barrel, and Henry Hub natural gas is up by $0.03 to $2.91/mmBtu (still down sharply over the last few months). The Nasdaq is down 1%.
    • 3%+ decliners: SUNE -5.9%. SPWR -4.3%. JKS -5.8%. DQ -9.4%. VSLR -4.6%. YGE -4.4%. HSOL -4.5%. ENPH -7.6%. CSUN -8.8%. TSL -3.4%. ASTI -10.2%. CSIQ -3.9%.
    • SA author Short/Long Trader sees a buying opportunity. Though admitting a "historic connection" exists between oil prices and renewable investment, the author sees little impact on rising solar demand from low oil prices going forward.
    • Trina, Canadian Solar, and JA Solar (JASO -1.4%) are Short/Long's favorite picks, given their low valuations - all three have P/Es below 10 - and generally healthy fundamentals.
    | 16 Comments
  • Mon, Jan. 5, 1:18 PM
    • WTI crude is down by $2.36 to $50.33/barrel, and briefly fell below $50/barrel for the first time since '09. Brent crude is down $3.18 to $53.24/barrel. Solar stocks, no stranger to getting hit hard by crude's decline, are seeing more pain (TAN -2.1%).
    • U.S. solar firms First Solar (FSLR -5.5%), SolarCity (SCTY -5.9%), SunPower (SPWR -4.6%), SunEdison (SUNE -6%), and TerraForm (TERP -4.4%) are especially hard-hit. But other names are also underperforming: CSIQ -3.6%. DQ -5.1%. CSUN -4.2%. JKS -2.8%. SOL -3.5%. The S&P is down 1.8%.
    • A reminder: Oil accounts for only ~1% of U.S. electricity production, and transmission/distribution costs often have a bigger impact on electricity prices than energy input costs.
    • Industry news: 1) Canadian Solar has completed selling two 10MW Ontario plants to renewable energy investment firm RET. 2) Hanwha (HSOL +0.9%) has struck a deal to supply 80MW of modules for a Chilean solar plant. 3) China Sunergy has won a 30MW solar module contract from an Indian solar park builder.
    | 17 Comments
  • Dec. 17, 2014, 4:46 PM
    • SunPower (NASDAQ:SPWR) is partnering with private Sunverge to provide a combined solar/energy storage offering to U.S. and Australian residential customers by early 2015.
    • The solution pairs SunPower's solar panels with Sunverge' energy storage solution - it features batteries and power electronics, and can be remotely managed through a cloud app.
    • IHS recently forecast the market for integrated residential solar/energy storage systems will grow 10x from 2014-2018, reaching 900MW. SolarCity has also shown an interest in the market.
    • SunPower rose 3.2% today. The Nasdaq was up 2.1%.
    | Comment!
  • Dec. 17, 2014, 4:37 AM
    • The Commerce Department is hiking import duties on solar energy equipment from China and Taiwan, closing a loophole that had allowed Chinese manufacturers to avoid tariffs and sell at illegally low prices in the U.S.
    • Steep anti-dumping duties will now placed on imports of most solar panels made in China and solar cells from Taiwan, likely raising the cost of solar energy at a time of falling oil prices.
    • Related tickers: FSLR, SPWR, SUNE, SCTY, CSIQ, SOL, YGE, DQ, ENPH, TSL, JASO, RGSE, JKS, CSUN, VSLR, HSOL , STP, OTC:MIDIL
    | 17 Comments
  • Dec. 16, 2014, 9:24 AM
    • Citing the value-creation potential of forming a YieldCo, Morgan Stanley has upgraded SunPower (NASDAQ:SPWR) to Overweight, and set a $35 target.
    • Like many other solar names, SunPower has plunged in tandem with crude prices. Shares now go for 1.3x 2015E sales.
    • The company stated at last month's analyst day its YieldCo plans remain "under review."
    | Comment!
  • Dec. 8, 2014, 1:34 PM
    • WTI crude oil has fallen 3.7% to $63.42/barrel today, after Morgan Stanley cut its 2015 oil forecast. Henry Hub natural gas is down 4.7% to $3.62/MMBtu.
    • Solar stocks, already battered by crude's recent plunge, are joining oil/gas firms in selling off (TAN -2.6%). The Nasdaq is down 0.8%. FSLR -3.8%. SPWR -5.4%. SUNE -4.4%. SOL -6.8%. HSOL -5.9%. JKS -6.4%. YGE -4.3%.
    • Industry news: 1) Hanwha is merging its U.S.-listed unit with its Q Cells unit. 2) Trina has bought a 28% stake in Chinese equipment leasing firm Shuntai for $50M to "expand its financing channels" for both its downstream and module ops. 3) Canada has joined the list of countries probing Chinese module vendors for anti-dumping violations.
    | 17 Comments
  • Dec. 2, 2014, 7:03 PM
    • "We believe solar fundamentals are driven mostly by government policies and natural gas prices in most major markets and see almost no impact on near term demand environment as a result of recent oil price volatility," argues Deutsche's Vishal Shah, defending solar stocks after they were clobbered on Friday and Monday in the wake of OPEC's decision not to slash production.
    • Shah expects strong 2015 solar demand in the U.S., China, and India, and thinks the U.S. market is especially well-insulated from falling oil prices, given local electricity prices are unlikely to drop near-term.
    • He recommends buying SolarCity (NASDAQ:SCTY), SunPower (NASDAQ:SPWR), SunEdison (NYSE:SUNE), Trina (NYSE:TSL), and Vivint (NYSE:VSLR) on weakness. Shah, long a SolarCity bull, adds "improving financing costs and greater penetration in new states could continue to drive positive demand momentum" for SolarCity and Vivint.
    • ETFs: KWT, TAN
    | 40 Comments
  • Dec. 1, 2014, 12:15 PM
    • With the Nasdaq down 1.3%, solar stocks are adding to the steep Friday losses they saw after OPEC declined to cut production, sparking a huge selloff in oil prices and anything energy/commodity-related. Oil prices have bounced a little today, but WTI crude is still only around $68/barrel.
    • Solar bulls have noted oil only accounts for a small percentage of global electricity production, and that solar stocks have already seen plenty of pain this year. The Guggenheim Solar ETF (TAN -5.2%) is now down 34% from a March high of $51.07.
    • Major decliners: FSLR -6.3%. SPWR -8.4%. SCTY -6%. SUNE -6.4%. SOL -12.8%.JKS -8.1%. CSUN -8.5%. CSIQ -9.3%. DQ -10.3%. VSLR -7.2%. TSL -7.8%. YGE -9.4%. RGSE -7.4%. HSOL -9.5%. TERP -5.8%. JASO -5.2%.
    | 43 Comments
  • Nov. 28, 2014, 10:55 AM
    | 47 Comments
  • Nov. 21, 2014, 6:45 PM
    | 46 Comments
  • Nov. 21, 2014, 10:28 AM
    | 37 Comments
  • Nov. 19, 2014, 6:57 PM
    • SunPower (NASDAQ:SPWR) is laying off 85-115 employees (1%-2% of its workforce), mostly in Europe, in a new restructuring. The company expects to take $15M-$25M in charges. (8-K)
    • The company delivered below-consensus 2015 guidance at last week's analyst day, albeit while also forecasting it would triple its upstream production capacity over the next five years.
    | 1 Comment
  • Nov. 17, 2014, 3:50 PM
    • Apparently mistaken chatter about Warren Buffett picking up a stake in SunPower (SPWR -0.6%) had the stock quickly jumping from less than $27 to above $28 in a manner of minutes around 3 ET, but the shares have since settled back to $27.40.
    | 1 Comment
  • Nov. 13, 2014, 9:21 AM
    • Ahead of its analyst day talks, SunPower (NASDAQ:SPWR) is guiding for 2015 revenue of $2.4B-$2.6B and EPS of $1.10-$1.50, below a consensus of $2.8B and $1.69.
    • At the same time, the company now expects Q4 revenue of $1.12B-$1.17B and EPS of $1.00-$1.25 (well above a consensus of $605M and $0.23) due to "the benefit of approximately $450 million in revenue and $0.80 - $0.90 in earnings per share related to the real estate accounting treatment of its 579-MW Solar Star projects."
    • SunPower expects to recognize revenue on 1.3GW-1.4GW in solar sales next year - its 2014 guidance is at 1.26GW-1.3GW - and to triple its upstream (cell/module production) solar capacity over the next five years. The 2015 capex budget is at $300M-$350M.
    • The company's YieldCo plans remain "under review."
    • Analyst day talks start at 10AM ET (webcast).
    • Analyst day slides (.pdf)
    | 2 Comments
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Company Description
SunPower Corp is engaged in designing, manufacturing, installation and ongoing maintenance and monitoring of solar system.