H.C. Wainwright Upgrades Broadwind Energy (BWEN) to Buy

H.C. Wainwright analyst Amit Dayal upgraded Broadwind Energy (NASDAQ: BWEN) from Neutral to Buy, PT $12.00.

The analyst comments "We are upgrading Broadwind (BWEN) to Buy from Neutral, with a price target of $12, based on the company's recently announced $175M wind tower order. We believe this order should contribute to: (1) a significant improvement in the fundamentals of the company, including higher capacity utilization, margin improvements, and growth in net income; and (2) allow management greater flexibility in continuing to diversify the company's revenues. We have previously highlighted the company's favorable position in the wind market and expectations for the company to benefit from regulations that support ongoing wind tower deployment. With this contract win, we view Broadwind as one of the early winners emerging from the recently passed Inflation Reduction Act (IRA). The company is starting 2023 on a very positive footing after having navigated through a challenging two-year macro environment. We believe this order could take the company's backlog to more than $250M (after accounting for fulfillments in 4Q22) from $132M at the end of 3Q22. Investors should also note that majority of the company's future operating profits supported by this order should flow to the bottom line as the company is sitting on roughly $250M in NOLs. We are now projecting 2023 and 2024 revenues of $204.3M and $250.5M. Similarly, we are projecting adjusted EBITDA of $9.6M and $25.3M for 2023 and 2024, respectively. We believe provisions in the IRA, such as the advanced manufacturing tax credit could provide further upside to our margin expectations for the company."

For an analyst ratings summary and ratings history on Broadwind Energy click here. For more ratings news on Broadwind Energy click here.

Shares of Broadwind Energy closed at $5.60 yesterday.

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