Bank of America Merrill Lynch Reiterates Underperform on SunPower

Bank of America Merrill Lynch is out with its report today on SunPower SPWRA, reiterating Underperform. In a note to clients, Bank of America Merrill Lynch writes, "We rate SunPower Underperform. SunPower offers the industry's highest efficiency panel but at a high cost, even efficiency-adjusted. With solar now in oversupply, we believe the company's margins should be pressured, which is accentuated by the slowing of self-developed projects in Italy. The company does have an attractive utility pipeline in the US and with Total's backing enjoys a lower cost of capital." Bank of America Merrill Lynch maintains a $15 PO on SPWRA. Shares of SPWRA closed Friday at $22.74, up 2.94% from Thursday's close.