SunPower (SPWR) Stock Up, UBS Upgrades

SunPower's (SPWR) rating was increased to 'buy' this morning at UBS.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of SunPower (SPWR) - Get Report are up 3.38% to $14.96 in late-afternoon trading as the company's rating was upgraded this morning to "buy" from "neutral" with a $22 price target at UBS

The upgrade for the San Jose, CA-based energy company comes as the firm believes "utility-scale margins are proving more intact than expected," according to the analyst note.

Additionally, SunPower should be able to maintain "some premium" with its niche market "selling the highest efficiency systems," the firm wrote. 

Also, UBS noted that SunPower has taken "a more measure approach to leverage and cash management," and only First Solar (FSLR) has a greater cash balance in the industry.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate SUNPOWER CORP as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

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