Hapoalim Securities Maintains Hold Rating On SPWRA

Hapoalim Securities is maintaining its Hold rating on shares of SunPower Corporation (NASDAQ: SPWRA).

“Though disclosures in its 2010 10K offered nothing to alter our thesis on SPWRA, it offered some useful insight into (1) the extent to which non‐module components drive revenue, (2) coming cash commitments, and (3) the potential end to favorable tax rates in the Philippines as soon as this year,” Hapoalim Securities writes.

“Most notably, with the put on its 1.25% convertibles exercisable in Feb. 2012, we foresee a $200m cash commitment within the next 12 months. Also, new debt of roughly $130m was issued in the quarter with roughly $100m of that due in 2Q11, while SPWRA's favorable tax rate of 5% (vs. the statutory 30%) begins to expire this year.”

SunPower closed Wednesday at $15.74.