SunPower filing Friday ‘shockingly bad,’ says GLJ Research

GLJ Research analyst Gordon Johnson says SunPower on Friday issued one of the most “shockingly bad” regulatory disclosures the firm has seen. The filing provided additional information from Ernst & Young regarding its resignation of auditor, with EY calling out new SunPower management for misrepresenting the reason it resigned, the analyst tells investors in a research note. EY writes that SunPower continues to cover up various allegations against current and former management that impeded its ability to provide a clean audit of the company’s books, according to GLJ. “We believe this is one of the most shocking 8-K disclosures we have ever reviewed,” the firm writes. It keeps a Sell rating on SunPower shares with a $1.61 price target. The stock in morning trading is down 5% to $2.56.