A one-two punch for SunPower ahead of slashed solar incentives: 5 big analyst cuts
Investing.com | Author Davit Kirakosyan
Published Oct 17, 2023 06:39AM ET
Investing.com -- Here is your Pro Recap of the biggest analyst cuts you may have missed today: downgrades at SunPower, BJ's Wholesale Club, DXC Technology, WEC Energy Group, and Kosmos Energy.
Never miss another market-moving headline.
SunPower shares plunge on Morgan Stanley downgrade/h2
SunPower (NASDAQ:SPWR) shares tumbled nearly 9% premarket Tuesday after both Citi and Morgan Stanley cut the solar energy outfit to sell-equivalent ratings ahead of California regulators' anticipated decision to slash rooftop solar panel incentives for apartments, schools, and farms.
The California Public Utilities Commission announced that the vote on the decision, which was originally scheduled for this coming Thursday, has been delayed until November 2.
Citi, which downgraded the company to Sell/High Risk from a prior neutral rating, also cut SunPower's price target by more than half, to $4.50 from the prior $10.00: "A crowded short, we see room for downside as forward estimates need to come down, strategic initiatives will take time to implement, market share could be at risk, and liquidity remains tight,” wrote the analysts.
Morgan Stanley, for its part, cut SunPower to Underweight from Equalweight, also with a sharply reduced price target of $5.00 vs. the prior $8.00, given concerns on diminishing demand in certain US regions for SunPower and a lagging California recovery following NEM 3.0 - a new, vastly reduced net metering compensation rate for new solar customers in the state.
The analysts added, "We see risk of a potential near-term corporate capital raise to maintain its liquidity thresholds and see considerable downside to consensus EBITDA estimates in 2024 and 2025."
Morgan Stanley emphasized that, despite the downgrade, it is "bullish on the long-term prospects for residential solar."
Shares were changing hands at $5.28 in premarket trading.
BJ's Wholesale cut to Neutral at Goldman Sachs/h2
Goldman Sachs downgraded BJs Wholesale Club (NYSE:BJ) to Neutral from Buy and trimmed its price target to $73.00 from $75.00, as reported in real-time on InvestingPro.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.