SunPower falls; analyst says outlook language may be culprit

Shares of SunPower Corp., which have gained about 80 percent in a month, fell Thursday even as it offered a strong first-quarter report and said it expects similar prospects for the foreseeable future.

In a research note issued before regular trading began, Cowen and Co. analyst Rob Stone, said some investors may react negatively to a slight change in the wording of its 2009 revenue forecast. The company said it expects 2009 revenue to grow "at least 40 percent." It previously predicted 2009 sales growth of "40 percent to 50 percent."

Since March 17 shares have soared from $54.95 to $99.58 at Tuesday's regular market close.

Stone noted that the "40 percent minimum is off a higher 2008 base so they are in fact guiding higher. And they also increased their production target." He rates the shares "Outperform" and suggested that investors buy on weakness.

Calyon Securities analyst Kelly Dougherty, in a client note, said she needed clarification about margins in the company' systems business and hoped to get more insight during the company's early afternoon conference call.

She has a "Buy" rating on the stock and a $120 price target.

Trending123.com rates SPWR a strong buy with a target of 200+