SunPower Pops 6% on $1 Billion Financing Partnership With Tech CU
Shares in SunPower Corp. (SPWR) rose more than 6% as the U.S. solar company announced it teamed up with funding partner Technology Credit Union (Tech CU) to secure $1 billion in solar and storage financing for the coming four years.
SunPower’s shares surged 6% to $7.55 in early morning U.S. trading. The stock has surged over 60% since mid-March. The partnership will give SunPower access to capital for its loan program and will increase financing options for qualified U.S. residential solar customers, the company said.
“Our new partnership with Tech CU will diversify SunPower’s funding resources while providing our customers with a streamlined process and experience,” said Norm Taffe, executive vice president of North American Channels at SunPower. “This $1 billion commitment will also allow for tens of thousands of SunPower solar systems to be funded over the course of the next four years.”
SunPower, which is majority-owned by French energy giant Total SA (TOT), makes solar panels for roof tops and specializes in residential and commercial solar installations.
The partnership will enable SunPower to reduce operating costs through lower per-watt financing fees and streamline the loan application and contract signing process for customers, the energy company said. In addition, the utilization of a financing platform that integrates SunPower’s sales and system design tools will give customers the ability to compare cash, lease or loan acquisition options all at one time, it said.
Wall Street analysts are sidelined on SunPower’s stock as the consensus recommends investors Hold the stock. The consensus rating is divided into 5 Holds, 4 Buys and 2 Sells. The $8.93 average price target forecasts shares will soar 19% in the coming 12 months. (See SunPower stock analysis on TipRanks)
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