After enjoying a pleasant pop in its share price at the end of 2023, solar company SunPower (SPWR 5.85%) is experiencing a dimmer 2024. Its share price cratered by 10% on Thursday after an analyst downgraded his rating on the stock. That decline was far steeper than the S&P 500 index's 0.3% dip for the session.
Yet another bearish take on SunPower
Well before the market opened, Raymond James Financial's Pavel Molchanov changed his recommendation on SunPower stock to market perform -- hold, in other words -- from his previous rating of outperform (buy).
That was only the latest in a series of bearish adjustments from analysts. In mid-December, for example, in a reset of its solar energy stock takes, Goldman Sachs downgraded SunPower from neutral to sell. Also, Piper Sandler's Kashy Harrison lowered his price target on the stock from $5 to $4, although he maintained his neutral rating.
Not coincidentally, these moves were made after SunPower issued an ominous "going concern" warning due to financing concerns. While the company escaped a default event with a creditor by signing a new amendment to its loan arrangement with that entity, its future remains in question.
A challenged stock in a tough industry
So Molchanov is not the only SunPower-watcher becoming more pessimistic about the company's future. Those financing concerns are serious, and despite many advances, the solar industry still isn't chock-full of companies booking profits on the regular. SunPower stock feels like it could be a falling-knife situation of the variety best avoided by investors.
