You can thank Bank of America for that -- and not only Bank of America.
BofA explained that SunPower's analyst day last week laid out "a robust turnaround plan with specific steps" that suggest SunPower will enjoy a "substantive turnaround" in its business. SunPower could really use a turnaround. According to data from S&P Global Market Intelligence, it's lost money in three of the last five years, and burned cash in all of them.
Bank of America isn't the only analyst getting incrementally more positive on SunPower, either. On Friday last week, both Cowen and R.W. Baird raised their price targets on the solar stock -- to $20 and $24, respectively. Cowen particularly liked SunPower's plan to grow its business in electrical storage, virtual power plants, and electric vehicle charging, and Baird echoed the sentiment.
Investors betting on a turnaround at SunPower should be on the lookout for improved revenue growth in these areas. At the same time, investment bank Morgan Stanley warns that there's the potential for SunPower's new growth initiatives to be "capital intensive" -- such that better revenue may not translate into improved profits.
For what it's worth, both Cowen and Morgan Stanley agree with Bank of America that -- at least until we know more about the profits picture -- SunPower stock remains a hold -- not a buy.