SunPower Announces Initial Public Offering SPWR Message Board

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Gold/Mining/Energy : SunPower Announces Initial Public Offering SPWR

SPWR 1.660

-5.4%

1:11 PM EST

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From: bob zagorin	9/5/2008 2:57:49 PM
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Zacks analyst - SPWR $98 target SunPower a "Hot" Green Play Posted Fri Sep 05, 09:47 am ET Posted By: Jon Kolb The fortunes of SunPower Corp. (SPWR) appear greener given the very high growth potential in the alternative energy industry and specifically solar power energy, with higher captive generation of panels, declining silicon cost and assured silicon supply until 2010. In addition, a new solar cell-manufacturing facility in Malaysia, expansion into the Italian market and a recent agreement with FPL for the photovoltaic power plants in the USA, adds visibility to the story. Also, cheaper poly-silicon supply contracts and thinner wafers are improving the solar cell and panel production overheads. Thus we maintain our Buy recommendation on SPWR common stock with a six-month target price of $98. Price appreciation to our near-term target price represents 15.6% upside potential. The company believes that its solar cells have the highest conversion efficiency available for the mass market. SunPower’s proprietary all back-contact solar cell design results in conversion efficiencies up to 50% higher per unit area than conventional solar cells. The management believes that SunPower solar panels appeal to residential and commercial customers seeking more aesthetically appealing solutions, because all electrical contacts are located on the back of the company s solar cells, they have a uniformly black appearance that allows SunPower solar panels to blend into customers' rooftops. As of this report, SPWR Class A Common Shares trade at 50.8x our 2008 earnings per share estimate and 24.3x our 2009 EPS estimate, representing a valuation at the upper-end of the range of comparable public companies in the alternative energy industry, yet such a premium is justifiable given SunPower’s above average growth potential.

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