SunPower shares give up early gains
LOS ANGELES (Reuters) - SunPower Corp SPWRA.O shares jumped in early trading Friday but then turned lower, a day after the solar panel maker posted strong third-quarter earnings, prompting some analysts to hike their target prices on the stock.
The shares challenged their September highs early in the day, peaking at $15.01, up 6 percent from Thursday's close, but then moved lower with most other solar shares and the broader stock market.
Caris, which rates the stock "hold," raised its price target for the shares to $16 from $14. Jefferies, which rates the stock "hold," raised its target to $16 from $15. Macquarie, which rates the stock "outperform," raised its target to $21.50 from $16.50.
Analysts liked the company's progress on its low-cost manufacturing facilities, better-than-expected margins, and the strong demand management forecast for next year in a conference call Thursday.
The company should provide more detailed guidance next week on full-year 2011, analyst Ben Pang at Caris told Reuters. He expects the guidance to be higher than the average Wall Street forecast.
But he and other analysts struck cautious tones on risks such as delays in big projects and falling prices broadly in the industry.
SunPower shares were down 35 cents, or 2.5 percent, to $13.76 in midday trade on the Nasdaq.
(Reporting by Sarah McBride; editing by John Wallace)