NEW YORK (TheStreet) -- SunPower (SPWR) shares are down -3.62% to $35.40 on Friday following the release of its second quarter earnings results that showed a year over year drop in profits.
The silicon photovalic cell manufacturer reported a decline in earnings to 28 cents per diluted share that still beat analysts estimates by 2 cents, while revenue of $621.1 million also beat expectations of $596 million.
Despite the negative investor reaction, analysts at RBC upped its price target to $36 from $35, and analysts at Brean Capital upgraded their rating to "buy" from "hold".
The analysts upgrades were in response to the company's announcement that it is planning a new factory that will increase production capacity by 50% from current levels.
The factory is expected to start production in 2017.
TheStreet Ratings team rates SUNPOWER CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNPOWER CORP (SPWR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."