tiprankstipranks
SunPower to Sell C&I Solutions Business to TotalEnergies
Market News

SunPower to Sell C&I Solutions Business to TotalEnergies

SunPower Corp. (SPWR) has announced plans to sell its Commercial & Industrial Solutions (CIS) business to TotalEnergies for $250 million, including $60 million of earn-out subject to regulatory evolution. SPWR stock rose 1.3% at the time of writing.

The deal will allow TotalEnergies to further strengthen its distributed generation business, currently accounting to close to 500 MW in operation worldwide. Also, the company will be able to develop over 100 MW of additional capacity per year. Notably, the divestment marks SunPower’s step in focusing more on its residential business.

The transaction is expected to close in the early second quarter. Also, this operation is not expected to affect TotalEnergies’ majority ownership stake (50.83%) in SunPower.

Executive Comments

The CEO of SunPower, Peter Faricy, said, “The sale enables SunPower to focus on creating a superior residential experience, increase our investment in product and digital innovation, and reach more homeowners. The enhanced strategic clarity created by this transaction will help SunPower lead the industry and deliver maximum value to our investors, partners and customers.”

“With this acquisition, TotalEnergies is further investing to grow its distributed generation activity in the U.S. and support its B2B customers in meeting their sustainable development goals. It is a new milestone in our renewable development in the country, where we are targeting 4 gigawatts of solar capacity by 2025,” said, Vincent Stoquart, the Senior Vice-President Renewables for TotalEnergies.

Wall Street’s Take

Recently, Credit Suisse analyst Maheep Mandloi maintained a Sell rating on SunPower and lowered the price target to $17 from $19. The new price target implies 0.9% downside potential from current level.

Based on 2 Buys, 6 Holds and 3 Sells, the stock has a Hold consensus rating. The SunPower stock price prediction of $22.95 implies 33.7% upside potential from current levels. Shares have declined 42.1% over the past year.

Blogger Opinion

TipRanks data shows that financial blogger opinions are 88% Bullish on SPWR, compared to the sector average of 71%.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News:
Evofem’s Phexxi Awarded QIDP Designation by FDA
Annaly Capital Q4 Earnings Match Expectations; Shares Gain 1.2%
Two Harbors Posts Higher-Than-Expected Q4 Earnings

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles