Expert Ratings For SunPower

In the last three months, 10 analysts have published ratings on SunPower SPWR, offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $4.05, along with a high estimate of $6.00 and a low estimate of $1.00. A decline of 21.66% from the prior average price target is evident in the current average.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of SunPower by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SunPower. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of SunPower compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of SunPower's stock. This analysis reveals shifts in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of SunPower's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Delving into SunPower's Background

SunPower is a leading solar technology and energy services provider that offers fully integrated solar, storage, and home energy solutions to customers primarily in the United States and Canada through an array of hardware, software, and financing options and smart energy solutions. The company's sales channels include a network of both installing and noninstalling dealers and resellers that operate in residential and commercial markets as well as a group of in-house sales teams in each segment engaged in direct sales to end customers.

Key Indicators: SunPower's Financial Health

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Decline in Revenue: Over the 3 months period, SunPower faced challenges, resulting in a decline of approximately -9.59% in revenue growth as of 30 September, 2023. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: SunPower's net margin is impressive, surpassing industry averages. With a net margin of -8.68%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): SunPower's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -8.31%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): SunPower's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.47%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.86, caution is advised due to increased financial risk.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.