Janney starts SunPower at Neutral with $16 fair value estimate

As previously reported, Janney Montgomery Scott analyst Thomas Meric initiated coverage of SunPower (SPWR) with a Neutral rating and $16 fair value estimate. SunPower, a U.S. residential solar installer that offers its customers cash sales, loans, and leases/PPAs, does not hold any assets on its balance sheet and in the case of leases and PPAs sells those systems to its joint venture with Hannon Armstrong (HASI), SunStrong, in which SunPower owns 51%, the firm explains to investors. When arriving at its valuation, the firm said the "most consequential" factor is the outlook for gross margin improvement throughout 2023, but it also cites SunPower’s relatively high exposure to California, the new homes market and cash sales and loans.