Why This Analyst Raised Maxeon Solar Technologies Forecast By Almost 100%

Maxeon Solar Technologies Ltd MAXN shares climbed in early trading on Wednesday, on news that the company and Samsung Electronics Ltd. SSNLF inked a deal.

The company could generate margin expansion in 2023 and achieve profitability in 2024, with ASPs remaining strong, according to Roth MKM.

The company not only has “structural limitations,” but faces increased competition from Intuit Inc INTU and there is continued macroeconomic pressure on total payment volume (TPV).

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The Analyst: Philip Shen upgraded the rating for Maxeon Solar Technologies to Buy, while raising the price target from $21 to $40.

The Thesis: With the company delivering strong results for the fourth and first quarters, investors have started to consider “the potential for continued execution ahead,” Shen said in the upgrade note.

“Despite the stock pulling back following its Q1 outperformance, we continue to see upside to the stock, especially with a DOE loan guarantee announcement as a strong positive catalyst around the corner,” the analyst wrote.

“Although US resi solar ASPs have declined meaningfully, we see a path for MAXN to maintain its premium IBC module pricing ahead,” he added.

MAXN Price Action: Shares of Maxeon Solar Technologies had risen by 3.13% to $29.61 at the time of publishing Wednesday.