– Sectors – SunPower Corp. (SPWR)

April 18, 2023

Surging U.S. Risk-Free Interest Rates + Weak CA Installs in Jan./Feb. + New PG&E Rate Reform Proposal = Tough Times Ahead for SunPower

By Gordon L. Johnson II

We Expect Stronger Headwinds for SunPower in 1H23E vs. Cons. Expectations; 2H23E Could Also be Plagued with Economic Hardships as a Solar Price War Erupts. On 2/16/23, when SPWR provided 2023E guidance for: (a) 90K-110K…

SunPower Corp. (SPWR)

Surging U.S. Risk-Free Interest Rates + Weak CA Installs in Jan./Feb. + New PG&E Rate Reform Proposal = Tough Times Ahead for SunPower

SPWR is Hemorrhaging Cash w- Single Family Home Sales Slowing & a Large 2023 Debt Obligation; SELL

The Worst House on a “Bad Street” – Downgrade to SELL & Adjust Yr-End PT to $6.99-shr (61% Downside)

Even w- Sunrun’s DevCo Multiple, Risk-Reward Still Skewed Downward; Maintain HOLD w- Downward Bias

Downgrade to HOLD on Technical Analysis + Interest Rate Risk – Upside “Trade” Appears Exhausted

We See SunPower as a Budding Rooftop Solar “Darling”; PT to $39.60; BUY

Is SPWR Potentially Headed to a Fraction of RUN’s Valuation “Heights”, Making it a Speculative BUY?

SEC-Induced Adverse Accounting Change + 3Q20 EBITDA Guidance 406% Below Consensus = Strong SELL

If Cash is King, Using a Chess Analogy, The “New SunPower” Already Appears to be in Check Mate

Is the Solar Wafer Price Bubble Bursting & Does it Imply -56% Downside Across the Solar Sector?

Is SPWR Using Accounting Shenanigans to Distort its Biz Unit Cash Flows & Are Investors Oblivious?

The Old “Accounting Switcheroo” Raises a Number of Questionable Red Flags

Undiscounted Downside Risk to US Module Prices in ’20 + Cont’d FCF Hemorrhage-Lack of Partner = SELL