AZRE - Azure Power downgraded to Sector Perform at RBC on cloudy outlook for solar firm

Azure Power ( NYSE: AZRE ) was downgraded to Sector Perform at RBC as the solar energy company grapples with several crises. The bank also added a "speculative risk" notation to its rating.

The discovery of alleged data manipulation at one of its facilities and the delay in filing reports required by the U.S. Securities and Exchange Commission are key sources of uncertainty, RBC said. Azure has yet to file a Form 20-F, which is a yearly report for foreign companies whose stocks are traded on exchanges in the United States.

The resignation of Harsh Shah, the chief executive who joined Azure two months ago, wasn't as "bad as feared," RBC said. Shah was appointed chief executive of IndigGrid Investment Managers a day after quitting Azure on Aug. 29.

News of Shah's departure triggered a selloff of Azure's stock, which lost about two-thirds of its value during three trading sessions. Azure on Thursday rose 2.5% to close at $3.68 a share.

Credit Suisse downgraded Azure ( AZRE ) shares to Underperform from Outperform, and cut its price target to $5 from $22.

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