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SunPower Jumps on Bullish Evercore Initiation

SunPower was initiated with an outperform rating by Evercore ISI.
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Shares of solar panel maker SunPower  (SPWR) - Get SunPower Corporation Report jumped Wednesday afternoon after the company was initiated with an outperform rating by analysts at Evercore ISI.

The stock has been overlooked by investors in recent years amid the company's reorganization and divestment of assets. Those moves mean that the stock trades at a discount relative to peers. 

“However, we believe investors are presently overlooking both industry and company specific long-term catalysts that will eventually help close the valuation gap,” analyst Sean Morgan wrote in a note to clients, according to CNBC. 

Morgan noted six key factors that will benefit the company including speed of adoption; a long-term trend of falling equipment costs; solar ownership costs falling; an increase in electric vehicles; increased concerns over the reliability of the energy grid; and improving market sentiment concerning solar loan financing. 

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The company also has a strong balance sheet and ample cash liquidity going for it, which could lead to SunPower pursuing high-margin growth opportunities around solar, storage, EV charging and home energy software, the note said according to CNBC. 

"As the company’s shift to target these industry tailwinds unfolds, leading to material top- and bottom-line growth, we believe the shares will rally,” Morgan said. 

The solar industry got a boost earlier this month after the White House debuted a plan to have nearly half of the country's electricity provided by solar energy by 2050.

The U.S. Department of Energy released the Solar Futures Study, which details the role solar energy will play in "decarbonizing" the country's power grid.