Baird Upgrades 'Simpler' SunPower To Outperform With $13 Target

Baird analyst Ben Kallo upgraded SunPower (SPWR) to Outperform from Neutral with a price target of $13, up from $10.

The company has emerged from the Maxeon Solar (MAXN) split with a "simpler" business model, and there is "significant" opportunity for multiple expansion, Kallo tells investors in a research note. The analyst believes SunPower shares are attractive for investors looking for exposure to the residential solar space.

The company should benefit from the "large, underpenetrated" U.S. distributed generation market, which provides a long runway for growth for all residential players, says Kallo.