Maxeon Solar Technologies, Ltd. Overview – August 28, 2020
Summary:
Maxeon Solar (MAXN) spun off from SunPower (SPRW), on August 27, 2020 and is trading at $20, down 46% from where it traded in the when issued market. I believe the stock is probably undervalued based on where peer solar manufacturers trade (roughly 1.0x revenue) and based on the implied valuation ($1BN+) of the company from an equity investment in Maxeon by TZS, a Chinese company. Nonetheless, I’m approaching the situation cautiously given that 1) Maxeon is losing money and will for the foreseeable future and 2) Maxeon’s business model is capital intensive an