BUZZ-Maxeon Solar slumps after brokerage downgrades stock, cuts PT

Reuters06-01

** Shares of solar module maker Maxeon Solar Technologies

slip as much as 16% to $1.705

** Brokerage Northland Capital Markets downgrades stock to "underperform" from "market perform"

** Brokerage also cuts price target $(PT)$ to 50 cents from $7, which represents a discount of 75% to stock's last close

** "Weak Q4 and Q1 numbers demonstrate persistent headwinds as well as MAXN's own unique problems" - brokerage

** TCL Zhonghuan Renewable Energy to boost holdings in MAXN to at least 50.1% from 22.4% previously, a transaction which the brokerage views negatively

** Northland says "The most obvious negatives (with regards to the transaction) are the immediate dilution to existing shareholders and the now slim-to-none odds of getting a DOE loan guarantee"

** One of seven brokerages rate the stock "buy" or higher, five "hold" and one "sell" or lower; their median PT is $5 - LSEG data

** Including sessions' losses, stock is down 76% YTD

(Reporting by Vallari Srivastava in Bengaluru)

((Srivastava.Vallari@thomsonreuters.com;))

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