Bank of America Reiterates Underperform Rating on SunPower Corp

Bank of America has published a report on SunPower Corp SPWRA reiterating their rating of the company. In the report, Bank of America writes, "Friday's options expiration likely exacerbated the situation, with the shorts growing concerned that more fails will be generated on increased delivery obligations and option traders hedging their gamma (rate of change of option moneyness) exposure. In addition, SunPower's 2015, 4.25% convertible is close to its conversion price of $22.53, possibly prompting convertible arbitrage traders (long bond + short stock) to unwind their positions." Bank of America rated SunPower Corp an Underperform with a price target of $15.00.