SunPower price target lowered to 25c from $2.50 at Citi

Citi lowered the firm’s price target on SunPower (SPWR) to 25c from $2.50 and keeps a Sell rating on the shares. The firm says it received multiple questions on SunPower’s letter to its dealers announcing discontinuation of lease and power purchase agreements based installations. The language in the letter and feedback from the dealer indicates that the decision was abrupt and likely forced on SunPower, the analyst tells investors in a research note. The firm believes the company will need significant spending reductions to recover from the loss of business. Citi sees the decision as positive for both Sunrun (RUN) and Sunnova Energy (NOVA) and modestly negative for Enphase Energy (ENPH).