Maxeon Solar Technologies falls as UBS downgrades to 'sell'

Topcon

08/03/2024 16:48

** Shares of Maxeon Solar Technologies  MAXN.O  down 6.8% to
$3.73
    ** Brokerage UBS downgrades to "sell" from "neutral", cuts
PT to $3 from $7
    ** Says its analysis indicates increasing competition in the
high-efficiency segment of the solar module market where MAXN
has traditionally been a leader
    ** "The key risk, in our view, is the outcome of multiple
ongoing patent infringement cases initiated by MAXN against
producers of Topcon modules" says UBS
    ** Adds that it forecasts "gross margin to decline from 9%
2023E to -3% 2024E and +3% 2025E, driven by module oversupply
conditions in EMEA, slowing residential solar demand environment
in the U.S. and increasing competition in the premium end of the
market"
    ** The new price target represents a 25.6% downside to the
stock's last close
    ** 3 of 9 brokerages rate the stock "buy", 5 "hold" and 1
"sell"; their median PT is $7
    ** Including sessions move, shares down ~48% YTD

 (Reporting by Tanay Dhumal in Bengaluru)
 ((Tanay.Dhumal@thomsonreuters.com; 
Twitter: https://twitter.com/TanayDhumal))