Maxeon Solar downgraded to Neutral at BofA on SunPower negotiation overhang

As previously reported, BofA downgraded Maxeon Solar (MAXN) to Neutral from Buy with a price target of $12, down from $31, as the analyst grows “increasingly bearish” on resolution with SunPower (SPWR), margins in residential channels and end market demand. In August, Maxeon – which previously had been spun out of SunPower in 2019 – disclosed that contract relationships had deteriorated with SunPower late on payments while alleging that Maxeon had breached contract terms, the analyst noted. Maxeon stopped shipments in late July, which caused it to cut its Q3 outlook earlier this month, and the firm expects this ongoing negotiation overhand to result in a deeper cut to fiscal year guidance along with Q3 results, BofA added.