SunPower: Three Analysts Slash ’09 Estimates; Earnings Thursday

With SunPower (SPWRA) set to report earnings on Thursday after the close, solar analysts have taken a fresh look at the company this morning–and at least three of them did not like what they saw. Analysts at Friedman Billings Ramsey, Thomas Weisel Partners and Pacific Crest all had words of warning this morning for investors in the stock, sharply reducing their forecasts for 2009. Here are the details:

Mehdi Hosseini, Friedman Billings: Hoseini repeated his Market Perform rating on the stock, but cut estimates; he slashes his 2009 view to $2.06 a share, from $3.02. For 2010, he goes to $3.05, from $3.40. Hosseini says the cuts reflect his view that 2009 will bring slower-than-expected demand in both Italy and the U.S. He also thinks ASPs will come under pressure, offsetting the impact of cost-cutting and pressuring gross margin. He also sees further trouble ahead in Spain, noting that some systems and modules have actually been shipped out of Spain and into other geographies. He notes that Spain accounted for 40 to 50 percent of SunPower’s 2008 revenues.

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