2024-01-17 22:32:00
Barclays analyst Christine Chu downgraded Solaredge shares from “market weight” to “underweight,” along with a price target that dropped to $50 from $74. Chu noted that she believes the recovery will be difficult for Solaredge in terms of top line, gross margin and market share. The analyst also noted that although it is still early in her opinion for investors to return to the solar market, Anphase is her preferred company in the sector.
Let’s recall, in October the company published a profit warning and the company’s CEO, Zvi Lando, said that “during the second part of the third quarter of 2023, we experienced unexpected cancellations and significant postponements of an existing backlog of orders from our European distributors.” Against this background, the company warned that meet the forecast and provided a forecast that falls by about 30% from the previous revenue forecast.
At the same time as the great weakness in Europe, there was and still is a great weakness in the US which caused the stock to fall from a price of $360 to $115 within a few months. In the state of California, they froze the subsidies to homeowners for the installation of solar panels and this created a halt in demand. At the same time, the interest rate The high rate reduces the attractiveness of homeowners to install – and this trend intensified and drained into the third quarter.
Solar shares are going through a difficult time, when in the last 12 months the Invesco Solar ETF has fallen by 48%. Following the high interest rates, financing of home projects such as the installation of solar panels became more expensive and hurt demand and the solar companies continue to feel the consequences.
SunPower is another company struggling to deal with the negative effects of weak solar demand. The company announced today a reorganization plan designed to reduce operating costs following the slowdown in sales. SunPower plans to complete the reorganization plan by the end of the third quarter of 2024, when it expects the process to cost about $12.8 million, with $8.2 million of that amount going to severance pay.
Citi analyst Vikram Bagri noted that the support of TotalEnergies, which serves as a major stakeholder in SunPower “is the key to solving the company’s liquidity concerns in the near term.” However, the analyst also noted that while TotalEnergies can help in the near term, it likely won’t solve SunPower’s long-term challenges.
At the end of October ENPHASE ENERGY -3.37% Close: 0 Open: 105.51 High: 107.1 Low: 103.87 Cycle:– Page Quote News Graphs Company profile Recommendations Additional articles on the topic: Solaredge’s big competitor -6.42% Close: 0 Open :68.78 High:70.91 Low:67.55 Cycle:– Page Quote News Graphs Company Profile Recommendations Additional articles on the subject: She also published a significant lowering of expectations for the continuation. When a week before Solaredge came out with the dramatic profit warning. According to the company’s management, the high interest rate will make home renovation projects more expensive and, accordingly, solar panel installations have been postponed and canceled.
Anpage’s management then stated that the slowdown in sales will continue through the first quarter of 2024. This is the most important thing that the company stated at the same time as the publication of the financial statements in which it actually provided reasonable results – the profit in the third quarter was $1.02, while the analysts expected $1.01. The management’s forecast for sales in the fourth quarter was disappointing and this will continue in early 2024 as well. Sales in the fourth quarter, estimated by Anpage management, will amount to $300 to $350 million, far below analysts’ expectations of $579 million.
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#solar #companies #red #day #Solarage #downgrade