UBS downgrades Maxeon Solar to Sell on increasing competition

UBS downgraded Maxeon Solar to Sell from Neutral with a price target of $3, down from $7. The firm’s analysis indicates increasing competition in the high efficiency segment of the solar module market where Maxeon has traditionally been a leader. The increasingly challenged value proposition of Maxeon’s IBC modules relative to competing Topcon technologies is underappreciated, the analyst tells investors in a research note. UBS sees the company’s current margin pressures persisting beyond 2024, with its revised 2025 adjusted EBITDA estimate now 50% below consensus. It also sees Maxeon’s July 2025 $200M convertible bond maturity as a likely overhang for equity investors given its anticipated continued cash burn through 2025.