TD Cowen cuts FTC Solar stock price target to $5 from $10

Published 01/04/2025, 14:36
TD Cowen cuts FTC Solar stock price target to $5 from $10

On Tuesday, TD Cowen adjusted its outlook on FTC Solar Inc. (NASDAQ:FTCI), a solar tracking solutions provider, by slashing its price target by 50%. The new target stands at $5.00, down from the previous $10.00, while the firm maintained a Buy rating on the stock. The adjustment follows FTC Solar’s report of strong sequential revenue growth and an increase in its contracted backlog. According to InvestingPro data, the stock is currently trading at $2.69, down over 51% in the past six months, though analysis suggests the stock may be undervalued at current levels.

Jeffrey Osborne, an analyst at TD Cowen, expressed increased confidence in FTC Solar’s ongoing transformation, despite noting that the company’s profit margins are currently compressed due to its lack of scale. Osborne highlighted that the company’s management has reaffirmed its goal to reach breakeven adjusted EBITDA by 2025, which is expected to be driven by project execution in the second half of the year.

FTC Solar’s commitment to cost control and readiness for domestic content were cited as supportive factors for the company’s long-term prospects. However, Osborne pointed out that, in the near term, there is limited visibility on the company’s margins. This uncertainty seems to stem from the challenges of scaling operations and the competitive landscape in the solar industry. InvestingPro has identified several key challenges, including rapid cash burn and weak financial health scores. Subscribers can access 12 additional ProTips and a comprehensive Pro Research Report for deeper insights into FTCI’s financial position.

The firm’s analysis suggests that while FTC Solar is on a positive trajectory with its order book and revenue, investors may need to be patient as the company works towards its financial targets. The lowered price target reflects a cautious optimism, acknowledging the hurdles the company faces in the immediate future while endorsing its overall strategy and market position.

FTC Solar’s stock performance will continue to be watched closely by investors as the company pursues its strategic goals and navigates the operational challenges ahead. The market’s reaction to TD Cowen’s revised price target and commentary may influence the stock’s movement in the near term.

In other recent news, FTC Solar Inc. reported a significant revenue decline of 43.1% year-over-year for Q4 2024, with revenue reaching $13.2 million. The company’s earnings per share fell short of expectations, contributing to a mixed market reaction despite exceeding revenue forecasts. FTC Solar’s GAAP net loss for the quarter was $12.2 million, or $0.96 per diluted share. Looking ahead, the company projects Q1 2025 revenue between $18 million and $20 million, indicating a potential 44% sequential growth. FTC Solar aims to achieve adjusted EBITDA breakeven in 2025, supported by strategic initiatives and new product launches like the 1P Pioneer Tracker. The company has also secured a five-year, five-gigawatt supply agreement with Recurrent Energy, spanning projects in the U.S., Europe, and Australia. Additionally, FTC Solar announced new project awards, including a 333-megawatt project in Australia and a 280-megawatt project on the U.S. West Coast. Analyst firms such as Roth Capital Partners (WA:CPAP) and TD Cowen noted the company’s strong bookings momentum and strategic focus on expanding its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.