MAXN - Maxeon Solar upgraded to Buy at Roth as margin expansion foreseen

2023-06-14 11:27:11 ET

Maxeon Solar Technologies ( NASDAQ: MAXN ) +5.3% in Wednesday's trading after Roth MKM upgraded the stock to Buy from Neutral with a $40 price target, raised from $21, predicting margins will improve sequentially this year and seeing a path to profitability in 2024.

The upgrade comes about a month after Maxeon ( MAXN ) reported Q1 gross margin that exceeded the company’s forecast, issued a strong Q2 outlook and increased 2023 guidance.

Analyst Philip Shen said he expects Maxeon ( MAXN ) will be able to maintain its premium ~$1/watt module pricing because its modules increase installer profit and increase total customer savings over the lifetime of the system.

Shen also noted Maxeon's ( MAXN ) North American supply chain is sold out through the end of 2025 for its utility scale solar business, with over 1 GW of capacity allocated for 2026 and 2027 based on options supported by deposits.

The analyst added that management believes the company is well positioned to supply the North American market due to its 1.8 GW manufacturing facility nearing full ramp.

More on Maxeon Solar Technologies:

Financial and valuation comparison to sector peers

• Analysis: Harnessing The Sun's Power: Maxeon's Journey Towards A Brighter Future In Solar Energy
• Stock price return: Up 94% YTD, up 190.5% in the past 12 months

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