SunPower with a Bright Future

SunPower Corporation (SPWRA - Analyst Report) announced that it signed a customer contract with German solar power plant integrator City Solar Kraftwerke AG. Over the next three years, SunPower will provide City Solar with solar panels and commercial rooftop and ground-mounted systems. This includes at least 100 megawatts of the company's solar panels.

SunPower's geographically diversified fortunes appear greener given the very high growth potential in the alternative energy industry, and specifically solar power energy, higher captive generation of panels, declining silicon cost and assured silicon supply. In addition, recent extension of the International Trade Commission in the U.S., resolution of tariffs in Spain, higher average conversion efficiency, improved silicon usage, and gradually improving ASPs, adds visibility to the story.

Accordingly, we maintain our BUY recommendation on SPWRA common stock with a six-month target price of $47.25. Price appreciation to our near-term target price represents 36.0% upside potential.

Read the full analyst report on SPWRA

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