On Tuesday, Roth/MKM maintained a Neutral rating on Maxeon Solar Technologies Ltd. (NASDAQ:MAXN) with a steady stock price target of $3.00. The firm's stance comes amid investor queries regarding the delay in Maxeon Solar's fourth-quarter earnings report.
The analyst believes that the company's management might have preannounced the quarter's results to set expectations for both the fourth quarter and the first quarter.
According to the firm, Maxeon Solar's fourth-quarter figures matched the guidance, despite the significant restructuring activities that included a faster reduction in Maxeon 6 capacity. The focus for the company remains on lowering manufacturing costs, streamlining operational expenses, and managing liquidity effectively. Still, the analyst noted that the guidance for the first quarter appeared weaker than anticipated.
The analyst from Roth/MKM expects Maxeon Solar to conduct its earnings call later in April 2024. The reiteration of the Neutral rating and the $3.00 price target reflects the firm's view on the company's recent performance and near-term expectations.
Maxeon Solar Technologies is engaged in the solar industry, where it works on manufacturing solar cells and modules. The company's efforts to restructure and manage costs are part of its strategy to navigate the competitive and cost-sensitive solar market.
Investors and stakeholders of Maxeon Solar Technologies can look forward to the company's upcoming earnings call for further details and insights into its operational strategies and financial performance.
InvestingPro Insights
As Maxeon Solar Technologies Ltd. (NASDAQ:MAXN) prepares for its upcoming earnings call, recent data from InvestingPro provides a deeper look into the company's financial health and market position. With a market capitalization of $144.09 million and a negative price-to-earnings (P/E) ratio of -0.74, Maxeon is navigating challenging waters.
The last twelve months as of Q3 2023 show a revenue increase of 27.11%, indicating some positive momentum in sales. However, this is juxtaposed with a quarterly revenue decline of -17.36% in Q1 2023, which may concern investors looking for consistent growth.
InvestingPro Tips highlight several areas of caution for Maxeon, including a rapid cash burn and weak gross profit margins of 12.14%. Analysts have revised their earnings downwards for the upcoming period, and they do not expect the company to be profitable this year. Moreover, the stock has experienced a significant decline over the past year, with a 1-year price total return of -89.75% and currently trading at only 7.02% of its 52-week high.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available, offering insights into factors such as free cash flow yield and dividend payments. To access these insights and more, investors can visit https://www.investing.com/pro/MAXN. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes further expert tips and metrics to guide investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.