© Reuters. Deutsche Bank cuts estimates on SunPower (SPWR), expects ‘disappointing’ 2Q report
Deutsche Bank reiterated a Hold rating on SunPower Corp. (NASDAQ:) and cut their 12-month price target on the stock to $9.50 (from $12.00) ahead of the company’s 2Q23 earnings release. The solar energy company is expected to report its 2Q earnings results on August 1.
Deutsche Bank analysts are expecting a disappointing earnings report vs. Street expectations and believe there are risks to downside for the current annual guidance given the shape of revenues and EBITDA in the coming quarters.
Analysts wrote in a note, “We have the most cautious view on SPWR and expect 2Q23 results to be disappointing vs Street expectations. We expect the company to report adj. EBITDA of $18m, compared to the Street at $28m, but more importantly we are anticipating risks to the annual guidance and expect downward revisions. Our 2023 EBITDA number of $101m is 28% below the mid-range of the company’s outlook ($125-155m). Longer connectivity times from the utilities and further transition in California from NEM 3.0 are areas of concerns.”
Other catalysts include origination trends for solar systems and battery attachment rates in California, and new builds data/sentiment.
Shares of SPWR are up 0.59% in afternoon trading on Tuesday.
