J.P. Morgan Underweight On SunPower

J.P. Morgan Chase & Co. is out with a research report on SunPower SPWRA and it has an Underweight rating and a $14 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "SunPower reported C2Q11 rev/PF EPS of $592.3mn/($0.32) vs. our ests. of $592.5mn/($0.32). The Co. had preannounced C2Q11 guidance two weeks ago and their results were in-line with the revised guidance. C2Q11 revenue was up 31% QoQ driven by the US market. GMs came in at the midpoint of guidance at 12.5%. As expected, margins were negatively impacted by weak market conditions in Germany and Italy, where the market was slow to respond to reductions in government subsidies. We remain UW SPWRA." Shares of SPWRA gained 73 cents yesterday to close at $16.24.