SunPower Corp. (SPWR:US), a U.S solar manufacturer mostly owned by Total SA, rose to the highest in seven months amid a broader solar rally and year-end technical factors.
SunPower, based in San Jose, California, climbed 6.8 percent to $5.80 at the close in New York, the highest since May 7. The NYSE-BNEF Global Solar Energy Index (NBGLSRDP) gained 2 percent today, the most since Dec. 14. The index has dropped 29 percent this year as manufacturers faced falling prices and an oversupply of panels.
“It looks like a continuation of the same ‘junk rally’ (particularly among Chinese solar stocks) that has been intermittently visible throughout December,” Pavel Molchanov, an analyst at Raymond James & Associates in Houston, said by e- mail. Molchanov rates the stock underperform, or the equivalent of sell.
Other analysts cited short-covering or other technical factors in advance of the New Year’s holiday.
“People would rather cover their positions if they have profit this year than wait around next year and maybe have to pay higher taxes,” Ben Kallo, a San Francisco-based analyst at Robert W. Baird & Co., said by telephone.
Kallo has a neutral, or hold, rating on SunPower and a target price of $8.
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