Spwr stock forecast indicates short-term volatility

SPWR stock forecast indicates short-term volatility, with shares trading near $3.90 after a recent 12% weekly drop. Analysts highlight pressure from higher interest rates impacting solar demand but note potential Q4 recovery as installation backlogs clear. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Check out other big names from the same industry as SPWR. Analysts revising SPWR stock forecast note that California’s net metering changes could slow adoption rates, yet federal tax credit extensions may offset regional weakness.