Why Maxeon Solar Technologies’ stock just collapsed 12%
Actions of Maxeon solar technologies (NASDAQ: MAXN) have had their share of ups and downs – but especially stockings – from the company widely publicized spin-off of the parent company SunPower end of August.
On the day of the split, Maxeon’s shares closed at $ 19, but by the end of September, they had lost more than a third of their value. As late as Monday, Maxeon appeared to be back on an uptrend and approaching $ 22 a share – but today it doesn’t look like the stock is getting there after all.
Maxeon stock is down 12.2% at 11 a.m. EDT – and Goldman Sachs is to blame.
The famous investment banker downgraded Maxeon Solar shares from neutral to sell last night, and slapped a price target of just $ 15 on the stock – well below what Maxeon stock sold immediately after its split, and approaching the lowest price the share reached. in the past two months.
Although Goldman Sachs remains positive on the solar industry in general, both “in the United States and abroad,” notes StreetInsider.com, the analyst has “margin / pricing / FCF concerns” regarding the individual players within the solar industry, and concerning Maxeon in particular.
Goldman notes that one of its biggest concerns is Maxeon’s Hemlock Semiconductor business, which is largely dependent on demand from Chinese solar companies for its product, and which has been affected by tariffs imposed by China on imports. of polysilicon during the trade war between the United States and China. Goldman also cites low prices resulting from what analysts call “massive government subsidies” for its own polysilicon suppliers.
Goldman advises investors to sidestep concerns and buy shares of thin-film solar specialist First solar or the most profitable Canadian solar rather.
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