Sunlight Financial downgraded on going concern risk at TD Cowen

TD Cowen analyst Jeffrey Osborne downgraded Sunlight Financial to Market Perform from Outperform without a price target. The firm previously thought the company’s strategic alternative review process would lead to a “swift sale.” However, the decision to file a quarterly report with no earnings call and the deteriorating solar demand and market dynamics for loan sales is concerning, the analyst tells investors in a research note. The firm says the financial profile of Sunlight risks installer partners migrating to other platforms. The company’s going concern language gives TD pause.