Analysts on Wall Street Lower Ratings for These 5 Stocks

02. Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN)

Price Reaction after the Downgrade: -0.2800 (-10.5066%)

On April 9, Raymond James analyst Pavel Molchanov made significant adjustments to his evaluation of Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN), downgrading the stock from Outperform to Market Perform. This decision precipitated a substantial price reaction, with Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) shares declining by more than 10% as of midday on April 10. Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) on April 8 issued its revenue guidance for the current quarter, which fell short of analyst estimates. Slowing global distributed generation demand compelled the company to accelerate the ramp-down of inventory for its Maxeon 6 solar panels, leading to higher-than-anticipated costs. Following the release of its preliminary fourth-quarter report, Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) revealed its expectation of first-quarter revenue to be $186 million, significantly below analyst estimates of $242.3 million, despite shipments reaching 508MW. The subdued guidance reflects the ongoing challenges posed by slowing global distributed generation demand. In response, the company initiated a restructuring plan last year, which included the phased elimination of its Maxeon 6 interdigitated back contact. As part of this restructuring, the company decided to accelerate the ramp-down of all Maxeon 6 capacity, resulting in higher-than-planned restructuring costs in the fourth quarter. Although the company’s fourth-quarter revenue is expected to be $229 million, slightly below analyst estimates of $236 million, it remains within the guidance range of $220 million to $260 million provided by the company in November. Additionally, shipments in the fourth quarter are anticipated to reach 653MW, surpassing the previous guidance range of between 610MW and 650MW. The downbeat revenue guidance underscores the persistent challenges facing Maxeon Solar Technologies, Ltd. (NASDAQ:MAXN) in the face of sluggish global demand. Investors are now closely monitoring the company’s restructuring efforts and its ability to adapt to evolving market conditions.