SunPower price target raised by 50c at BofA, here’s why

BofA raised the firm’s price target on SunPower (SPWR) to $4.25 from $3.75 and keeps an Underperform rating on the shares. While its higher target is driven by modestly higher estimates, BofA is still concerned by SunPower’s modest cash position, exiting with negative free cash flow in 2023 that turns modestly positive in 2024, and the firm says that a combination of weak and uncertain demand plus a Maxeon (MAXN) contract payment supports its view that SunPower will consider raising additional equity capital in the near-term to strengthen its liquidity.