SunPower Jumps; Deutsche Bank Upgrades To Buy

SunPower (SPWRA) shares are getting a lift today from Deutsche Bank analyst Steve O’Rourke, who upped his rating on the stock to Buy from Hold, while increasing his price target to $31, from $28. The stock closed yesterday at $25.31.

O’Rourke writes in a research note that the upgrade reflects the stock’s attractive valuation, anticipated industry growth and the company’s market position. He notes that the bears think the company can’t match the Chinese solar companies on module manufacturing costs; O’Rourke concedes that this is largely true, but that that winning in the solar industry is about more than the cost of energy delivered. “We believe the company’s products, systems business and market strategy will enable the company to outgrow the market,” he writes.

SPWRA today is up $1.28, or 5.1%, to $26.59.