SunPower (NASDAQ:SPWR) stock collapsed more than 40% this week after the company informed dealers that it will no longer support new leases, installations or product shipments, with analysts largely writing the company off as on the verge of going out of business.
The residential solar installer told dealers that it recognizes “the gravity” of the decision and is looking for alternative providers to transfer sold projects, according to a July 17 letter obtained by the firm Roth MKM.
SunPower stock has lost nearly all its value the last 12 months, with shares down nearly90% to close at $1.51 on Thursday. Guggenheim Securities has slashed its price target to $0 from $1 previously. The stock was down 53 cents, or 35.4% to 98 cents in early trading Friday.
“We think this effectively marks the end for SPWR as an operating business,” Guggenheim analysts Joseph Osha and Hilary Cauley told clients in a Friday note. “Considering the debt that the company has accumulated, we believe that SPWR’s equity no longer has any value.”
SunPower is likely “entering a winddown process” that will end in the sale of its remaining assets and the delisting of its stock, the Guggenheim analysts said. JPMorgan sees the decision as an “indefinite suspension” of SunPower’s future dealings, according to a Wednesday note.
