SunEdison (SUNE) 'Making Progress' Needham & Company Says; PT Slashed to $10
Needham & Company analyst Y. Edwin Mok slashed his price target on SunEdison (NYSE: SUNE) to $10.00 (from $18.00) following Q3 results but maintained a Buy rating saying the company is making progress.
Mok commented, "SUNE's 3Q15 report highlighted the strategic shift toward more third-party project sales after its yieldco strategy fell out of favor with investors. However, such efforts would typically take multiple quarters to bear fruit, while in the meantime lingering concerns over liquidity and cash burn, worries over plans for the VSLR acquisitions, and falling yieldco share prices should continue to pressure SUNE stock. While we do not see a silver bullet, we expect progressive steps toward positive cash flow over the next few quarters to bring investor confidence back and support a higher stock price in 2016. We maintain our Buy but lower our PTto $10 from $18 based on more conservative DevCo and yieldco cash flow generation."
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Shares of SunEdison closed at $5.77 yesterday.