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SunPower downgraded to Sell at Guggenheim after rescue financing

As previously reported, Guggenheim analyst Joseph Osha downgraded SunPower to Sell from Neutral with a $1 price target following the company’s announcement of a rescue financing package. While SunPower has solved its near-term liquidity problems, the cost to equity shareholders is “greater than the market seems to realize,” the analyst tells investors. With operating expenses being cut and cash preservation a focus, the firm doesn’t see how SunPower avoids losing market share in 2024 and it expects the company’s new MW additions to decline by about 20% this year.

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