SunEdison (SUNE) to Remain Volatile, Needham & Company Says; Upside Seen to $7

January 8, 2016 6:44 AM EST
Get Alerts SUNE Hot Sheet
Price: $0.34 --0%

Rating Summary:
    11 Buy, 6 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 9 | New: 35
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Needham & Company analyst Y. Edwin Mok lowered his price target on SunEdison (NYSE: SUNE) to $7.00 (from $10.00) but maintained a Buy rating after the company announced the pricing of $725MM of Second Lien Term Loans and a series of exchange agreements of its Convertible Notes and Preferred Shares.

Mok commented that the stock declined sharply due to the high cost of the financing and the very low level of cash SUNE has exiting 2015, highlighting its challenging liquidity situation.

"We believe the stock will remain volatile in the near term as SUNE tries to close the VSLR [N/R] deal, which will add more debt and further increase dilution," he said. "However, if SUNE achieves its targets, it should return to positive cash flow within 1H16, paving the way for the stock to recover."

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

Shares of SunEdison closed at $3.34 yesterday.

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