Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why SunPower Corporation's Shares Popped 25% Today

By Travis Hoium - Jun 18, 2019 at 12:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An upgrade from Wall Street has this solar stock trading sharply higher today.

What happened 

Shares of solar manufacturer SunPower Corporation ( SPWR -9.11% ) jumped as much as 24.6% in trading Tuesday after getting an upgrade from Wall Street. Shares were hitting their daily high at 12:30 p.m. EDT. 

So what

Analyst Brian Lee at Goldman Sachs upgraded SunPower's stock from neutral to a buy rating and increased his price target from $6 to $11 per share. He said there are volume tailwinds that will drive growth, such as a solar mandate on new homes in California and people installing solar ahead of declining federal tax credits next year. 

Solar carport in a parking lot.

Image source: SunPower.

The upgrade coincides with a report from the SEIA and Wood Mackenzie that says the U.S. installed 2.7 gigawatts (GW) of solar in the first quarter, the most ever in the first three months of the year. Analysts at Wood Mackenzie are also increasing expected installations this year by 1.2 GW. 

Now what

I wouldn't read much into the upgrade from Goldman Sachs because the sentiment of Wall Street regarding solar energy can rise and fall. The more important data point is a record quarter for solar in the U.S. and a very bullish sentiment long term. If installations rise, particularly in residential markets, SunPower will be one of the biggest beneficiaries. That's a reason to own the stock long term, and it's why I'm still bullish on this leading solar stock.  

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

SunPower Corporation Stock Quote
SunPower Corporation
SPWR
$24.44 (-9.11%) $-2.45
The Goldman Sachs Group, Inc. Stock Quote
The Goldman Sachs Group, Inc.
GS
$382.73 (-1.24%) $-4.81
Verisk Analytics, Inc. Stock Quote
Verisk Analytics, Inc.
VRSK
$221.65 (-1.87%) $-4.22

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
141%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/04/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.