Jefferies Reiterates Buy Rating On SPWRA

Jefferies is reiterating its Buy rating on SunPower Corp. SPWRA based up a loan of up to $1.187B from the U.S. DOE. Says Jefferies, in its report, “The SPWRA/NRG Energy (NRG, Hold, $21.47) 300MW DC California Valley Solar Ranch plant has received up to $1.187B from the US DOE. The loan guarantee from the DOE is a contractual obligation between the US government, creditors (banks) and the borrower (NRG) in which the US government backstops the loan in the event of default, thus lowering the risk and cost of capital for the project.” Jefferies maintains its price target of $22 on the stock. SPWRA closed at $16.27 yesterday.