Analyst reiteration and valuation
Northland has reiterated an Outperform rating on Complete Solaria (NASDAQ:SPWR) and maintained a price target of $5.40. That target represents an approximately 239% increase from the prevailing share price of $1.59. InvestingPro's fair value assessment indicates the stock is currently trading below its estimated intrinsic value.
Recent financial performance
In its research note, Northland highlighted that Complete Solaria has produced positive operating income across the last four quarters, pointing to a steady operating performance over that period. Supporting data from InvestingPro shows the company has been profitable over the previous twelve months, reporting a gross profit margin of 43.56% over that span.
Sales footprint and revenue trajectory
The firm noted a marked expansion in the company's geographic sales coverage over the prior year. Complete Solaria increased its presence from 22 states to 45 states, fueled by notable growth in California, Texas and Florida, which are among the largest residential solar markets in the United States. Northland linked this expanded market coverage to the company’s exceptionally strong top-line performance, with reported revenue growth of 657% over the last twelve months.
Market dynamics cited as supportive
Northland pointed to broader electricity market conditions as constructive for solar providers. The research firm emphasized that rising electricity demand, coupled with more frequent extreme weather events, is contributing to higher costs and reduced reliability in U.S. power supplies. Those developments, Northland argues, create favorable conditions for distributed energy solutions and home solar adoption.
Strategic relationships
The research note also stressed Complete Solaria’s close relationship with Enphase Energy as a strategic advantage. Northland characterized this relationship as positioning Complete Solaria as a leading sales and installation provider of home energy technologies, underscoring vertical connectivity between device supply and field installation.
Related developments at SunPower
In additional industry news cited alongside the analyst coverage, SunPower Inc. completed a $12 million all-equity acquisition of Cobalt Power Systems, a renewable systems provider based in Mountain View, California. Under the terms described, Cobalt will continue to operate as a standalone subsidiary while aligning common financial and administrative practices with SunPower.
SunPower also secured a $20 million Standby Equity Purchase Agreement with Yorkville Advisors Global, a financing arrangement intended to provide flexibility without diluting shareholders or incurring interest on unused funds. Separately, SunPower completed its first residential installation of Monolith solar panels, manufactured by Renewable Energy Corporation, in Santa Cruz, California. That installation was performed by Cobalt Power Systems, which has already placed a second order due to demand.
Further, SunPower amended an equity line of credit with White Lion Capital LLC, increasing the facility from $30 million to $55 million. The company indicated this is part of a plan to maintain a minimum cash balance of $10 million each quarter.
Takeaway
Northland’s continued Outperform rating on Complete Solaria rests on the company’s recent profitability, a strong gross margin, rapid revenue expansion and a significantly broadened sales footprint. The analyst also cited structural market trends and supply-partner relationships as supporting factors. Separately reported transactions and financing moves by SunPower highlight ongoing consolidation, product deployment and liquidity management within the residential solar services segment.