Maxeon Solar slumps after brokerage downgrades stock, cuts PT
31/05/2024 17:49
** Shares of solar module maker Maxeon Solar Technologies
MAXN.O slip as much as 16% to $1.705
** Brokerage Northland Capital Markets downgrades stock to
"underperform" from "market perform"
** Brokerage also cuts price target (PT) to 50 cents from
$7, which represents a discount of 75% to stock's last close
** "Weak Q4 and Q1 numbers demonstrate persistent headwinds
as well as MAXN's own unique problems" - brokerage
** TCL Zhonghuan Renewable Energy 002129.SZ to boost
holdings in MAXN to at least 50.1% from 22.4% previously, a
transaction which the brokerage views negatively
** Northland says "The most obvious negatives (with regards
to the transaction) are the immediate dilution to existing
shareholders and the now slim-to-none odds of getting a DOE loan
guarantee"
** One of seven brokerages rate the stock "buy" or higher,
five "hold" and one "sell" or lower; their median PT is $5 -
LSEG data
** Including sessions' losses, stock is down 76% YTD
(Reporting by Vallari Srivastava in Bengaluru)
((Srivastava.Vallari@thomsonreuters.com;))