SunPower initiated with a Neutral at Citi

Citi initiated coverage of SunPower with a Neutral rating and $16.50 price target. The analyst expects the solar sector to see "continued unprecedented growth" but sees near-term uncertainty for the U.S. residential solar sector. The firm prefers geographically diversified names with European exposure, as well as utility and commercial scale versus residential exposure. Its top picks are Enphase Energy (ENPH), Eneti (NETI), SolarEdge Technologies (SEDG) and Shoals Technologies (SHLS). Citi’s least preferred names are Generac (GNRC) and SunPower (SPWR).