Maxeon Solar cut to Sell at UBS on increasing competition (NASDAQ:MAXN)

Maxeon Photo voltaic Applied sciences (NASDAQ:MAXN) -6.7% in Friday’s buying and selling after UBS downgraded shares to Promote from Impartial with a $3 worth goal, slashed from $7, citing growing competitors within the excessive effectivity section of the photo voltaic module market the place the corporate historically has been a pacesetter.

The more and more challenged worth proposition of Maxeon’s (MAXN) IBC modules relative to competing Topcon applied sciences is underappreciated, UBS analyst William Grippin writes, seeing present margin pressures persisting past 2024 and revising his FY 2025 adjusted EBITDA estimate ~50% beneath consensus.

Grippin additionally sees the corporate’s July 2025 $200M convertible bond maturity as a probable overhang for fairness buyers given anticipated continued money burn by 2025.

Maxeon’s (MAXN) challenges come as the corporate is working to rebuild its U.S. buyer base following termination of a provide settlement with SunPower, the analyst notes.