• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

GLJ Research labels SunPower stock as ‘worthless’ amid operational halt and financial woes

by July 19, 2024
written by July 19, 2024

SunPower Corporation (NASDAQ: SPWR) is facing intense scrutiny following a recent analysis by GLJ Research, which has cast a dark shadow over the company’s future. 

In a critical report, GLJ Research has labeled SunPower’s stock as “worthless” after the company paused key operations, including lease and power agreements, and product shipments.

GLJ Research’s stark assessment

On Thursday, GLJ Research reiterated its “Sell” rating on SunPower shares and removed its price target, citing severe operational and financial issues. 

The research firm’s report underscores a troubling halt in SunPower’s operations, which it believes could render the company’s equity valueless. 

As of the end of Q4 2023, SunPower’s financial health was notably precarious, with approximately $87 million in cash compared to $379 million in debt. 

Additionally, the company reported a significant free cash flow deficit of $53 million.

The decision to set a price target of $0.00 reflects the analysts’ view that SunPower’s commitments are no longer being met. 

The halt in operations has been perceived as a major factor contributing to this pessimistic outlook.

Potential scenarios for change

GLJ Research outlined three scenarios that could potentially alter their bleak assessment of SunPower:

Acquisition by a third party: If SunPower were to receive a buyout proposal from another industry player, it might change the company’s trajectory.

Monetary policy shift: A change in the U.S. Federal Reserve’s monetary policy, such as a cut in interest rates or quantitative easing, could impact SunPower’s financial outlook.

Speculative trading activity: A speculative trading surge akin to the GameStop short squeeze could potentially drive up the stock price.

Without one of these significant interventions, GLJ Research believes that SunPower stock is on a path towards worthlessness.

Financial overview and market sentiment

SunPower’s recent financial metrics paint a concerning picture. According to InvestingPro data, the company’s market capitalization stands at a relatively modest $457.84 million. The stock has a negative price-to-earnings ratio of -2.53, indicating the company is not currently profitable. 

Revenue has declined by -3.21% over the past year, with an even steeper quarterly drop of -28.23% in Q4 2023. 

This revenue contraction has likely contributed to the company’s operational shutdown and the analysts’ negative outlook.

The company’s gross profit margin is currently at 14.15%, and its year-to-date price total return is -47.83%, reflecting significant investor skepticism. 

Analysts foresee a continued decline in sales and do not expect SunPower to achieve profitability in the near future.

Implications for investors

The situation at SunPower remains fluid, and investors should carefully monitor developments. 

The company’s recent operational halt and financial instability underscore the urgent need for potential strategic interventions to stabilize its market position. 

The removal of the price target by GLJ Research indicates a profound lack of confidence in the stock’s future value.

For those invested or considering investment in SunPower, it is crucial to stay informed about the company’s ongoing financial health and operational strategies. 

The situation serves as a stark reminder of the risks associated with investing in companies facing severe financial challenges and operational disruptions.

The post GLJ Research labels SunPower stock as ‘worthless’ amid operational halt and financial woes appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Plug Power plummets 15% amid $200 million stock offering: Should you buy?
next post
Citigroup faces amended lawsuit over alleged risk management deception

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Dem governor blasts Trump, Musk in new attack campaign as 2028 buzz grows

    April 29, 2025
  • Tulsi Gabbard on short list of candidates for director of national intelligence job

    November 13, 2024
  • Top Senate Intelligence Dem grills Gabbard if Edward Snowden is ‘brave’: ‘Very troubling’

    January 30, 2025
  • FTSE 350: Top Risers and Fallers

    July 17, 2024
  • Trump-backed bill to stop ‘rogue’ judges passes House

    April 10, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,735)
  • Investing (624)
  • Stock (775)

Latest Posts

  • Third top Pentagon aide Colin Carroll on administrative leave over leaks probe

    April 16, 2025
  • South Korean political unrest jolts Asian stocks, triggers market volatility

    December 4, 2024
  • More than 1 million federal employees complied with Musk’s ‘what did you do last week’ email: WH

    February 25, 2025

Recent Posts

  • Harris team ‘not aware’ of stolen Trump docs sent ‘directly’ to Biden camp

    September 19, 2024
  • Election 2024: Trump, Harris’ top Hollywood celebrity supporters

    November 2, 2024
  • Kamala Harris’ presidential campaign raises nearly $50 million since Biden endorsement

    July 22, 2024

Editor’s Pick

  • Former Hamas hostage Naama Levy breaks silence in first message since her release

    January 28, 2025
  • How long will the Kamala Harris honeymoon in the polls against Donald Trump last?

    July 29, 2024
  • State Department will absorb remaining USAID programming as independent agency is dismantled

    March 28, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock