Stock Markets
JPMorgan maintains underweight rating on SunPower stock
![](https://letizo.com/wp-content/uploads/2024/07/jpmorgan-maintains-underweight-rating-on-sunpowerstock_66995c12cf6a4.jpeg)
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.
Stock Markets
Five9 stock hits 52-week low at $28.74 amid market challenges
![](https://letizo.com/wp-content/uploads/2024/09/five9-stock-hits-52-week-low-at-28-74-amid-marketchallenges_66db470e2f7bf.jpeg)
In a turbulent market environment, Five9 (NASDAQ:) Inc’s stock has touched a 52-week low, reaching a price level of $28.74. This significant downturn reflects a broader trend for the cloud software company, which has seen its shares plummet by -58.79% over the past year. Investors are closely monitoring Five9’s performance as it navigates through a period of heightened volatility and shifting industry dynamics, which have contributed to the stock’s current valuation at this low point. The company’s efforts to rebound from this position will be under scrutiny in the coming quarters as market participants look for signs of a strategic turnaround or further indications of market pressures.
In other recent news, Five9 Inc . has achieved an annual revenue run rate exceeding $1 billion in Q2, a significant milestone despite lowering its annual revenue guidance by 3.8% due to customer budget constraints. The company’s adjusted EBITDA margin rose to 17% of revenue, contributing to a strong operating cash flow of $126 million. The company also confirmed plans to reduce its global workforce by approximately 7% by the end of 2024, a strategic move projected to cost between $12 million and $15 million.
Five9’s recent acquisition of Acqueon, a firm specializing in proactive outbound omnichannel customer engagement, aims to expand its AI offerings and bolster its growth. This move is in line with the company’s focus on managing expenses and improving profitability, with initiatives like FedRAMP and expansion into India anticipated to improve gross margins.
In their analysis, Piper Sandler maintained an Overweight rating for Five9, with a steady price target of $47.00, while Needham and BTIG both maintained a Buy rating with price targets of $48.00 and $45.00 respectively. These ratings reflect the firms’ confidence in Five9’s strategic positioning and potential for growth, despite the current challenges and workforce reduction.
InvestingPro Insights
Amid the current market conditions, Five9 Inc’s recent performance can be put into perspective with select data from InvestingPro. The company’s market capitalization stands at roughly $2.15 billion, indicating the size and scale of the business amidst its challenges. Despite the stock’s decline, analysts are showing a hint of optimism, with 20 analysts having revised their earnings estimates upwards for the upcoming period. This could signal a potential turnaround in sentiment or underlying business performance.
Importantly, Five9’s liquid assets are reported to surpass short-term obligations, suggesting that the company maintains a degree of financial flexibility to navigate its current difficulties. Furthermore, while the stock is trading near its 52-week low, it’s worth noting that the relative strength index (RSI) suggests the stock is in oversold territory, which can sometimes precede a rebound in share price. Investors looking for comprehensive analysis and additional InvestingPro Tips on Five9 can find more insights, including 14 other tips, at https://www.investing.com/pro/FIVN.
In terms of financial health, the company operates with a moderate level of debt and is expected to become profitable this year, according to analysts’ predictions. These elements may offer some solace to investors considering the stock’s substantial price fall over the last year. For those seeking a deeper dive into Five9’s valuation and future prospects, the InvestingPro platform provides a fair value estimate of $45.04, which is considerably higher than the current trading price, suggesting potential undervaluation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
TD Cowen maintains Buy on Terns Pharmaceuticals
![](https://letizo.com/wp-content/uploads/2024/09/td-cowen-maintains-buy-on-terns-pharmaceuticals_66db4713864f7.jpeg)
TD Cowen reiterated its Buy rating on shares of Terns Pharmaceuticals (NASDAQ:TERN), following the company’s investor call. The call was held to manage expectations for the upcoming Phase 1/2 CARDINAL study data for chronic myeloid leukemia (CML). The firm noted the challenges in measuring the efficacy endpoint (EP) due to disease progression and the absence of treatment switch guidelines, which makes major molecular response (MMR) a challenging efficacy endpoint for Phase 1/2 trials.
The interim Phase 1/2 data aims to evaluate descriptive efficacy signals, considering patients’ baseline BCR-ABL levels and treatment history. The analyst highlighted that the once-daily (QD) dosing and the lack of food effect could potentially enhance the quality of life for patients compared to other allosteric tyrosine kinase inhibitors (TKIs).
Terns Pharmaceuticals has been focusing on the development of improved treatment options for CML. The company’s approach to dosing, which does not require food intake, may offer a more convenient alternative for patients, potentially leading to better adherence and outcomes.
The topline data from the 6-month Phase 1/2 CARDINAL study is anticipated to be available in 2025. This data will provide further insights into the treatment’s efficacy and safety, which are critical factors in the ongoing development and potential approval process.
Investors and stakeholders in Terns Pharmaceuticals are expected to closely monitor the progress of the CARDINAL study, as it could have a significant impact on the company’s future prospects and position in the CML treatment landscape.
In other recent news, Terns Pharmaceuticals has experienced significant developments. The biopharmaceutical company reported robust earnings and revenue results, with Mizuho Securities maintaining an Outperform rating on Terns shares, citing strong enthusiasm for the company’s drug, TERN-701, a potential treatment for chronic myeloid leukemia.
The firm expects the first interim Phase 1 CARDINAL study data for TERN-701 in December.
Terns also announced the appointment of Elona Kogan as its new chief legal officer, a move that underscores the company’s strategic development and pipeline advancement.
The company also secured an extension of its office lease in Foster City, California, through 2027, reflecting Terns Pharmaceuticals’ operational stability and long-term planning.
In terms of clinical trials, Terns has made progress in its ongoing Phase 1 study of TERN-701, with interim findings suggesting the drug can be administered once daily with or without food.
This development, coupled with the forthcoming Phase 1 data for another of Terns’ drugs, TERN-601—an oral GLP-1 receptor agonist for obesity—expected next month, underscores the company’s commitment to innovative therapies.
These recent developments, from financial performance to executive appointments and clinical trials, highlight Terns Pharmaceuticals’ ongoing efforts to advance its strategic objectives and deliver on its mission. The company’s activities are closely watched by investors and industry analysts, including those from Mizuho Securities, who continue to support the company’s potential.
InvestingPro Insights
As Terns Pharmaceuticals (NASDAQ:TERN) navigates the complexities of its Phase 1/2 CARDINAL study, investors are keeping a keen eye on the company’s financial health and stock performance. According to InvestingPro, Terns holds more cash than debt, which is a positive signal for financial stability. Additionally, with five analysts revising their earnings upwards for the upcoming period, there is a sense of optimism about the company’s potential performance.
However, it’s important to note that Terns is not currently profitable and has been quickly burning through cash, which may raise concerns about long-term sustainability. The company’s P/E Ratio stands at -5.71, reflecting these profitability challenges. Despite these hurdles, Terns has managed a 1 Year Price Total Return of 45.42%, indicating some investor confidence in the company’s growth prospects. The anticipated fair value from analysts stands at 15 USD, while the InvestingPro Fair Value is calculated at 5.8 USD, highlighting a divergence in valuation perspectives.
For those looking for more in-depth analysis, additional InvestingPro Tips on Terns Pharmaceuticals can be found at https://www.investing.com/pro/TERN, offering a comprehensive look at the company’s financial details and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Macron discussed support for Ukraine and Gaza ceasefire with Germany’s Scholz
![](https://letizo.com/wp-content/uploads/2024/09/macron-discussed-support-for-ukraine-and-gaza-ceasefire-withgermanys-scholz_66db4718bf910.jpeg)
PARIS (Reuters) – French President Emmanuel Macron discussed the importance of maintaining support for Ukraine and the need for a ceasefire in Gaza during talks on Friday with German Chancellor Olaf Scholz, said the French presidency.
Regarding Ukraine, the two leaders expressed their determination to support the country “for as long and as intensively as necessary” in its war against Russia, the Elysee said.
- Forex2 years ago
Forex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Forex2 years ago
Unbiased review of Pocket Option broker
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Stock Markets2 years ago
Morgan Stanley: bear market rally to continue
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China