In a report released today, Jeff Osborne from TD Cowen downgraded TPI Composites to a Hold, with a price target of $1.00.
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Jeff Osborne has given his Hold rating due to a combination of factors impacting TPI Composites. One primary concern is the impending expiration of key wind energy incentives under the One Big Beautiful Bill (OBBB) by the end of 2027, which could significantly affect demand for turbine blades. This policy change introduces uncertainty in the market, making it difficult for investors to predict long-term demand beyond 2025.
Additionally, TPI Composites faces financial challenges due to its substantial debt load, which includes a significant loan accruing high interest. Despite expectations of revenue growth and improved EBITDA in 2025, the company’s financial structure limits its ability to translate these gains into shareholder value. The management’s ongoing review of strategic alternatives, such as potential asset sales, lacks a clear timeline, adding to the uncertainty. These factors collectively justify the Hold rating as the company navigates these risks.
Osborne covers the Technology sector, focusing on stocks such as Itron, Enphase Energy, and First Solar. According to TipRanks, Osborne has an average return of -0.1% and a 43.64% success rate on recommended stocks.