On Friday morning (July 19th), US solar manufacturer SunPower (stock code: SPWR) fell nearly 50%, and has accumulated a decline of over 70% this week. It is now reporting a historic low of $0.76 per share and has reached the warning threshold of the "one dollar delisting system".
Since 2021, the stock price of this solar energy giant has been continuously declining, and the downward trend accelerated in 2023. Last year, the stock price fell by 73.21%, and this year it has fallen by more than 80% on this basis.
On the news front, US investment bank Roth MKM stated that a letter it obtained showed that SunPower told distributors on July 17 that the solar company no longer supports new leasing and power purchase agreement sales, nor does it support the installation of new projects and has stopped shipping.
SunPower also stated that the company is no longer able to provide installation services for transported and delivered goods. "SunPower is aware of the 'seriousness' of this decision and is seeking alternative suppliers to transfer the sold projects. Analysts generally believe that the company is on the brink of bankruptcy.
Guggenheim Securities has lowered its target price for SunPower from $1 to $0, analysts Joseph Osha and Hilary Cauley wrote in Friday's report, "This actually marks the end of SPWR as an operating company
Guggenheim analysts said that SunPower is likely to "enter into (bankruptcy) liquidation proceedings" and ultimately sell its remaining assets and delist its stocks. "Considering the company's accumulated debt, we believe that SPWR's equity no longer holds any value
Earlier this week, JPMorgan analysts told clients that SunPower's suspension of operations is "indefinite" and may not be resolved soon. The bank explained that this decision was mainly due to the weakening of its cash flow and balance sheet. Additionally, due to the company's inability to submit documents to the SEC, it may not be able to enter the capital market.
Analysis suggests that there are two very important catalytic factors for the growth of rooftop solar business in the United States: low interest rates, which enable consumers to afford the cost of such installations, and state-level policies, where households installing equipment can receive generous rewards for selling excess solar power to the grid.
But currently, these two factors clearly do not exist. The high interest rates of the Federal Reserve go without saying, while California, the largest solar energy market in the United States and the headquarters of SunPower, has reduced the returns for households and businesses to transmit excess solar power to the grid, causing a significant blow to the industry.
However, Guggenheim believes that SunPower's suspension of operations may provide an important opportunity for competitors, and Sunnova may benefit from it. As of press time, Sunnova's stock price has risen by over 4%.