SunPower Corporation (SPWR)

[eFinanceMarkets]

$SPWR SunPower tumbles 20% but analyst sees buying opportunity

SunPower (SPWR -19.4%) sinks ~20% following better than expected Q2 results accompanied by weakened Q3 and FY 2017 revenue guidance.

But Oppenheimer analyst Colin Rusch thinks today's drubbing provides a buying opportunity, saying the guidance cut was due simply to SPWR adjusting the time frame on certain projects in Mexico in an attempt to capture more margin and noting that the company maintained its projection for positive operating cash flow despite the cut.

Rusch also writes that he "would not be surprised to see SPWR and FSLR to complete a sale of CAFD" in H2, given the strong demand for solar projects, adding that using any proceeds to reduce debt would be a positive catalyst for the stock.