Roth MKM downgraded TPI Composites to Neutral from Buy with a price target of $10, down from $15. The company reported lower than expected preliminary Q2 results and cut its 2023 guidance, the analyst tells investors in a research note. The firm says quality issues resulted in a $30M-$35M Q2 warranty charge, while increased inspection costs/quality checks, lower demand, and lower selling prices are also expected to impact 2023 results. Roth sees risk that the factors impacting Q2 will persist in the seocnd half of 2023, including the potential for further warranty claims.
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Read More on TPIC:
- TPI Composites (NASDAQ:TPIC) Tanks on Disappointing Q2 Prelim; Slashes Guidance
- TPI Composites cuts FY23 revenue view to $1.53B-$1.58B from $1.6B-$1.7B
- TPI Composites reports preliminary Q2 revenue $380M, consensus $406.08M
- TPI Composites, Inc. Reports Preliminary Estimated Second Quarter 2023 Earnings Results and Provides Updated Guidance for 2023
- TPI Composites hires Neil Jones as Chief Quality Officer, effective August 1