BofA Turns Bullish On Maxeon, Sees Sharp Upside

BofA analyst Julien Dumoulin-Smith upgraded Maxeon Solar Technologies Ltd MAXN to Buy from Neutral with a $23 price target, implying a 34% upside.
While noting that Maxeon could qualify for tax credits of 11 cents/W with its proposed U.S. cell and module manufacturing facility, he believes too much of the focus and recent stock performance has been tied to the sentiment and expectations around the Build Back Better plan.
Dumoulin-Smith contends that Maxeon's underlying core business is slated for a turnaround by YE22.
In that timeframe, the company's out-of-market polysilicon contract ends, and the conversion of Max 5 into Max 6 should allow it to renegotiate product pricing with SunPower Corp SPWR and its EU customers, said Dumoulin-Smith.
Maxeon designs, manufactures and distributes solar products.
Price Action: MAXN shares traded higher by 5.19% at $18.05 in the premarket session on the last check Friday.

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