Maxeon Solar upgraded to Buy from Neutral at Roth MKM

Roth MKM analyst Philip Shen upgraded Maxeon Solar to Buy from Neutral with a price target of $40, up from $21. The analyst sees the company’s margins improving sequentially in 2023, a path to profitability in 2024, and its average selling prices “remaining strong.” In addition, Maxeon’s recent raise and capacity expansion plans should also support growth, the analyst tells investors in a research note. Despite the stock pulling back following the Q1 outperformance, there is upside, especially with a Department of Energy loan guarantee announcement as a “strong positive catalyst around the corner,” writes Roth.