TPI Composites Faces Sell Rating Amid Macroeconomic Challenges and Debt Concerns

Analyst Julien Dumoulin Smith from Jefferies maintained a Sell rating on TPI Composites (TPIC – Research Report) and keeping the price target at $0.50.

Julien Dumoulin Smith has given his Sell rating due to a combination of factors impacting TPI Composites. The company is facing significant macroeconomic challenges, including delays in permitting for wind projects and uncertainties surrounding the Inflation Reduction Act, which are affecting the broader renewables sector. Additionally, TPI Composites is exposed to tariff risks, particularly in its factories located in India, while its Mexican operations remain exempt.
Another critical concern is the company’s substantial debt burden, with $420 million in net debt and a significant portion maturing in 2027. The high cost of debt, if refinanced, could weigh heavily on the company’s shares. Furthermore, the outlook for the coming years appears to be moderating, with revenue and EBITDA projections falling below consensus estimates. These factors collectively contribute to a challenging environment for TPI Composites, justifying the Sell rating.