Stock Markets
JPMorgan maintains underweight rating on SunPower stock
On Thursday, JPMorgan reaffirmed its underweight rating on shares of SunPower (NASDAQ:) Corporation (NASDAQ:SPWR) following a significant operational change by the company. SunPower announced to its dealers that starting from July 17, it will stop supporting new lease or Power Purchase Agreement (PPA) project installations. This move is not anticipated to be a temporary measure but an indefinite suspension of the company’s future activities in this area.
The decision by SunPower is seen as primarily driven by its own financial challenges, including weakened cash flow and a constrained balance sheet. Moreover, the company’s current inability to access capital markets due to its non-current SEC filing status is a contributing factor. The analyst clarified that this development should be regarded as specific to SunPower and not indicative of broader industry trends.
SunPower has historically utilized Enphase Energy (NASDAQ:) inverters for its solar-only installations. However, given that SunPower’s business represents only a low-single digit percentage of Enphase’s revenue, the impact on Enphase is expected to be minimal.
In contrast, SunPower’s dealer network is predicted to look for alternative partnerships, potentially benefiting companies like Sunnova Energy International (NYSE:NYSE:) slightly, and to a lesser extent, Sunrun Inc . (NASDAQ:).
The analyst also noted that there is no impact on SunPower’s existing assets within its SunStrong joint venture with Hannon Armstrong (NYSE:) Sustainable Infrastructure Capital (NYSE:HASI). Furthermore, the joint venture was not considered a significant contributor to Hannon Armstrong’s future growth. The underweight rating on SunPower’s stock reflects these recent developments and the analyst’s outlook on the company’s prospects.
In other recent news, SunPower Corp has secured an additional $50 million loan funding from its majority shareholder, Sol Holding, as part of its strategy to strengthen business operations and foster financial stability. This move follows the departure of the company’s Executive Vice President and Chief Operating Officer, Jennifer Johnston, as announced by the company.
Simultaneously, SunPower has received a non-compliance notice from Nasdaq due to a delay in filing its quarterly financial report. The company is actively working to regain compliance and finalize its overdue financial reports.
Moreover, SunPower has expanded its product lineup to include Tesla (NASDAQ:) Powerwall 3, responding to increasing consumer demand for reliable solar energy storage solutions. The company is now offering financing options for this product, including loans and leases.
However, Citi has issued a note advising investors to avoid SunPower amid a recent surge in solar energy stocks, maintaining a Sell rating on the company. These developments are part of the recent news surrounding SunPower Corp.
InvestingPro Insights
In light of JPMorgan’s assessment of SunPower Corporation (NASDAQ:SPWR), a deeper look at the company’s financial health is warranted. According to InvestingPro data, SunPower’s market capitalization stands at 437 million USD, with a negative P/E ratio of -2.53 in the last twelve months as of Q4 2023. This metric indicates that the company is not currently profitable. Furthermore, the company’s revenue has declined by 3.21% over the last twelve months, and gross profit margins are relatively weak at 14.15%, underscoring the financial challenges mentioned by the analyst.
InvestingPro Tips suggest that SunPower may struggle with its interest payments on debt and is rapidly depleting its cash reserves. Moreover, analysts do not expect the company to be profitable this year, and the stock price has experienced a significant decline over the last year, with a 77.88% drop in the one-year total return as of 2024.
For readers looking to delve further into SunPower’s financials and future prospects, InvestingPro offers additional tips and insights. There are 10 more InvestingPro Tips available, which can provide a more comprehensive understanding of the company’s position and potential strategies moving forward. Readers interested in these insights can enhance their market analysis by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
(Reuters) -Private equity firm Insight Partners is on the brink of closing a new $10 billion-plus fund, roughly half the amount originally targeted, the Financial Times reported on Sunday, citing five people with knowledge of its plans.
Insight will not formally close its 13th fund until early next year, the report said, adding that the final figure may be closer to $12 billion.
Insight Partners declined to comment on the report.
The report said Insight is using a private equity-style structure to sell more than $1 billion worth of stakes in start-ups and to free up cash to return to investors.
One of the start-ups is Israeli cybersecurity firm Wiz, which had called off a $23 billion deal with Google parent Alphabet (NASDAQ:) in July, the report said.
New York-based Insight raised $20 billion for its 12th flagship fund in 2022, aiming to ramp up investments in software and technology companies.
JERUSALEM (Reuters) -Prime Minister Benjamin Netanyahu said Israel would inflict a “heavy price” on the Iran-aligned Houthis who control northern Yemen, after they reached central Israel with a missile on Sunday for the first time.
Houthi military spokesman Yahya Sarea said the group struck with a new hypersonic ballistic missile that travelled 2,040 km (1270 miles) in just 11 1/2 minutes.
After initially saying the missile had fallen in an open area, Israel’s military later said it had probably fragmented in the air, and that pieces of interceptors had landed in fields and near a railway station. Nobody was reported hurt.
Air raid sirens had sounded in Tel Aviv and across central Israel moments before the impact at around 6:35 a.m. local time (0335 GMT), sending residents running for shelter. Loud booms were heard.
Reuters saw smoke billowing in an open field in central Israel.
At a weekly cabinet meeting, Netanyahu said the Houthis should have known that Israel would exact a “heavy price” for attacks on Israel.
“Whoever needs a reminder of that is invited to visit the Hodeida port,” Netanyahu said, referring to an Israeli retaliatory air strike against Yemen in July for a Houthi drone that hit Tel Aviv.
The Houthis have fired missiles and drones at Israel repeatedly in what they say is solidarity with the Palestinians, since the Gaza war began with a Hamas attack on Israel in October.
The drone that hit Tel Aviv for the first time in July killed a man and wounded four people. Israeli air strikes in response on Houthi military targets near the port of Hodeidah killed six and wounded 80.
Previously, Houthi missiles have not penetrated deep into Israeli air space, with the only one reported to have hit Israeli territory falling in an open area near the Red Sea port of Eilat in March.
Israel should expect more strikes in the future “as we approach the first anniversary of the Oct. 7 operation, including responding to its aggression on the city of Hodeidah,” Sarea said.
The deputy head of the Houthi’s media office, Nasruddin Amer, said in a post on X on Sunday that the missile had reached Israel after “20 missiles failed to intercept” it, describing it as the “beginning”.
The Israeli military also said that 40 projectiles were fired towards Israel from Lebanon on Sunday and were either intercepted or landed in open areas.
“No injuries were reported,” the military said.
PARIS (Reuters) – Eight people have died trying to cross the Channel from France to England, French authorities said on Sunday, confirming earlier media reports.
This latest incident follows the deaths of 12 people earlier this month when their boat capsized in the Channel on its way to Britain and highlights the pressure on the British and French governments to find ways to tackle the boat crossings.
Jacques Billant, the Prefect of the Pas-de-Calais region, said that rescue crews were alerted that a boat with 59 people onboard was in difficulty in waters off the coast of Ambleteuse in the Pas-de-Calais area.
“A new drama took place around one in the morning and we deplore the death of eight people,” he told a news conference, adding that the other 51 onboard were now in the care of rescue and medical crews.
The dead were men from Eritrea, Sudan, Syria, Egypt, Iran and Afghanistan, he added.
The Channel is one of the world’s busiest shipping lanes and currents are strong, which makes crossing on small boats dangerous.
The latest incident brings to 46 the number of people who have died trying to cross the Channel from France since the start of the year, Billant said.
On September 14 alone there were eight attempts to cross the Channel from France and some 200 migrants were rescued, he said.
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