SunPower Inc. (NASDAQ:SPWR) is one of the best alternative energy stocks to invest in according to analysts. On February 5, SunPower Inc. (NASDAQ:SPWR) said it granted 850,000 restricted stock units to two key employees from Cobalt Power Systems, Inc. The inducement was a direct incentive for the employees to join SunPower as part of its acquisition of their company.
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Cobalt is a California-based solar design and installation company known for building large, high-end residential solar systems. SunPower signed a letter of intent to acquire it in an all-equity deal worth $12 million on January 16. The company will continue to operate as a standalone subsidiary.
In a different update, on February 4, Northland analyst Gus Richard reaffirmed an Outperform rating and a $5.40 price target on SunPower. Northland’s reiteration was based in part on the company’s track record of positive operating income over the past four consecutive quarters, which the analyst said demonstrates consistent financial performance.
The analyst also pointed to SunPower’s significant expansion of its geographic footprint over the past year. He noted that the company had expanded its sales coverage from 22 to 45 states, with particularly notable growth in the three largest solar markets in the United States. This expansion, said Richard, contributed to what he described as an impressive 657% growth in revenues over the trailing twelve months.
Richard highlighted rising electricity demand and increasingly extreme weather events as structural tailwinds for the residential solar sector. He argued these trends are making electricity in the US more expensive and less reliable, and that these conditions are favorable for solar providers like SunPower.
SunPower Inc. (NASDAQ:SPWR) is a solar energy company headquartered in Richmond, California. It designs and manufactures high-efficiency solar panels and provides integrated solar and storage solutions for residential and commercial customers.
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Disclosure: None. This article is originally published at Insider Monkey.
