SunPower (SPWRA) 2010 Guidance Conservative

Analysts at Robert W Baird reiterate their "outperform" rating on SunPower Corporation (NASDAQ: SPWRA), while reducing their estimates for the company. The target price for SPWRA is set to $34.

SPWRA has completed its accounting investigation and restated its financials for FY08 and Q1-Q3:09. Although SunPower posted higher-than-expected revenues for Q4, its EPS fell short due to “costs associated with the SunRay acquisition and the accounting investigation,” the analysts say.

SPWRA has forecasted its non-GAAP EPS for 2010 at $1.25-$1.65, which Robert W Baird finds conservative. “Due to the strength in its downstream business (i.e., captive channel), we think management has better visibility into 2010 and 2011 results than many of its competitors,” the analysts add.