SunPower (SPWR) Should Weather Decline in Solar Subsidies, Margins

Via AP - 3/11:

"Shares of solar-power company SunPower Corp. rose Tuesday as an RBC Capital Markets analyst said the company should be able to weather the expiration of government incentives and potentially weaker panel margins over the long term...Analyst Stuart Bush noted that if expiring government incentives for solar power are not renewed, it will put pressure on demand in the U.S. and Spain. In addition, potential oversupply of solar products could put profit margins under pressure next year."

"Despite those concerns, Bush is still betting that SunPower's size and scope will keep it above the fray. He maintained an "Outperform" rating on the stock.

Though SunPower has business in Spain and the U.S., it has diversified its revenue base. In addition, its supply-chain integration should allow it to boost margins elsewhere if panel profits come under pressure, Bush said."