UPDATE: Goldman Sachs Raises PT on SunPower to $21 (SPWRA)

Goldman Sachs is out with its report today on SunPower (NASDAQ: SPWRA), raising its PT from $16.50 to $21.

In a note to clients, Goldman Sachs writes, "Our 6-month PT of $21 (vs. $16.50 prior), which implies 2% downside potential, incorporates: (1) a DCF- and multiples-based fundamental value of $17.50 (50% weight), and (2) an M&A premium (50% weight) that assumes a 6.5X multiple on 2011E EV/EBITDA, implying approximately $24.50."

Goldman Sachs maintains Neutral on SPWRA.

Shares of SPWRA closed Thursday at $21.38, up 0.09% from Wednesday's close.