Tuesday, FBR Capital Markets downgraded SunPower Corp. (SPWRA) shares to Market Perform from Outperform and lowered its price target to $30 from $38.
Analyst Mehdi Hosseini noted that although SPWRA's possibilities of restating some of the past quarterly financial reports may be purely a reflection of conservative accounting and governance procedures, we still find it prudent to move to the sidelines until the company provides additional color/details behind the accounting errors.
The analyst noted that he did reduce his calendar 2010 estimates in early November when he realized that the full impact of a new FIT program in CA will not become material until second half of the calendar 2010 time frame. The accounting errors announced from last night adds an additional layer of uncertainties, this time associated with the cost structure and cost assumptions.
Currently, SPWRA is down $4.92 or 18.07% and trading at $22.31.
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