SUNL - Sunlight Financial stock plunges after guidance withdrawal Citi downgrade

Sunlight Financial ( NYSE: SUNL ) stock has plummeted 29% in Thursday premarket trading after the company withdrew its 2022 guidance as is biggest installer winds down. Through contractors, Sunlight provides financing to homeowners for residential solar systems and other home improvements.

After the announcement, Citi analyst Arren Cyganovich downgraded Sunlight Financial ( SUNL ) Thursday to Sell/High Risk from Buy on concern that its revenue will decline as a result of interest rate volatility and the customer loss.

"This appears to be idiosyncratic to this installer, but also likely means lower than expected loan production ahead," Cyganovich wrote in a note to clients.

The analyst reduced EPS estimates to -$0.08 from $0.25 for 2022, to $0.11 from $0.37 for 2023, and to $0.19 from $0.41 for 2024. The cuts reflect lower loan production growth and lower platform fees, mitigated by lower assumed expenses.

In May, the company guided for 2022 total revenue of $145M-$155M , adjusted EBITDA of $55M-$60M, and funded loan volume of $2.9B-$3.1B.

Take a look at Sunlight's ( SUNL ) cash flow history here.

The Sell rating contrasts with the SA Quant rating of Hold and the average Wall Street rating of Strong Buy.

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