2023-04-13 15:19:17 ET
SunPower ( NASDAQ: SPWR ) +7.7% after Bank of America upgraded the stock to Neutral from Underperform with a $15 price target, seeing improved visibility into 2023 profitability.
SunPower ( SPWR ) has underperformed the Solar ETF ( TAN ) and Clean Energy ETF ( ICLN ) by 30%-40% YTD, which creates a far more balanced risk-reward profile, BofA's Julien Dumoulin-Smith said.
"Discussions with both management and SPWR dealer partners support a view that carried backlog from 2022 is an underappreciated driver of 2023 growth," the analyst wrote, noting 2022 installs could have been even stronger if the company had better access to modules.
SunPower's ( SPWR ) growth should begin to be reflected in Q2, as Q1 is seasonally slow and this year likely will be hurt by poor weather conditions, Dumoulin-Smith said.
SunPower ( SPWR ) also said it secured more than $450M in financing commitments for its residential solar and storage loan program .
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SunPower upgraded at BofA as backlog 'underappreciated' growth driver