BofA Sees 44% Downside In This Newly Covered Small Cap Stock

Bank of America analyst Adhok Bellurkar initiated TPI Composites Inc TPIC with an Underperform rating and a price target of $22 (implying a downside of 44.4%).
Bellurkar mentions risk to profitability from raw material increases and contends that the consensus 8% revenue compound annual growth rate forecast is overestimating the company's growth given his views on increasing competition, contract expirations, and a slowing industry.
Recently, the company reported Q2 results and guided FY21 net sales of $1.75 billion - $1.80 billion versus the consensus of $1.80 billion.
Price Action: TPIC shares are trading lower by 7.37% at $39.46 on the last check Monday.