TPI Composites price target raised to $0.70 from $0.50 at Jefferies

Investing.com - Jefferies raised its price target on TPI Composites (NASDAQ:TPIC) stock to $0.70 from $0.50 on Thursday, while maintaining an Underperform rating on the wind blade manufacturer. According to InvestingPro data, the company’s stock has declined over 76% in the past year, with a concerning financial health score of 1.18, rated as ’WEAK’.

The investment firm expects second-quarter 2025 results to reflect "transition-related softness" but believes the market underestimates production disruption impacts in Mexico and Turkey.

Jefferies lowered its 2026 EBITDA estimates by approximately 30%, citing potential downside for 2026 and beyond production volumes.

The firm’s primary concerns center around TPI Composites’ debt burden and weakening end market conditions in the wind energy sector.

Jefferies also noted limited potential for developers to leverage the 12-month runway in OBBB, a factor contributing to its continued Underperform stance on the stock.

In other recent news, TPI Composites reported a first-quarter net loss of $1.01 per share, significantly wider than analysts’ expectations of a $0.48 loss per share. Despite this, the company’s revenue for the quarter reached $336.2 million, surpassing forecasts of $322.12 million and marking a 14.3% year-over-year increase. The revenue growth was attributed to higher average sales prices and a 4% rise in wind blade production volume. However, TPI Composites faced challenges from increased labor costs in Turkey and Mexico, as well as higher pre-existing warranty charges. The company maintained its full-year revenue guidance of $1.4 billion to $1.5 billion but lowered its adjusted EBITDA margin outlook to 0-2% from the previous 2-4% range. Additionally, TPI’s board of directors has initiated a strategic review to explore potential alternatives and optimize its capital structure. In other developments, TD Cowen downgraded TPI Composites’ stock from Buy to Hold due to concerns over the company’s debt and policy risks. The firm also lowered its price target to $1.00, citing a lack of a clear deleveraging plan and potential demand challenges post-2027.

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