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Why TPI Composites (TPIC) Stock Is Up Today

TPIC Cover Image

What Happened?

Shares of global wind blade manufacturer TPI Composites (NASDAQ: TPIC) jumped 3.3% in the morning session after the stock experienced a technical rebound following a period of significant selling pressure spurred by recent analyst downgrades. 

The wind blade manufacturer's stock has been under considerable strain, falling after a TD Cowen downgrade to "Hold" from "Buy" on July 8, which cited concerns over the company's debt load and policy risks. Analysts have highlighted the potential phasing out of key Production Tax Credits after 2027 as a significant future challenge for the company. The stock's morning gains appear to be a relief rally after the sharp decline. 

Adding to this perspective, data indicates that short interest in TPI Composites has recently seen a decrease, suggesting a slight improvement in investor sentiment. While recent analyst ratings have been cautious, some acknowledge that the company has secured production volumes through 2025, which is expected to provide some near-term stability.

After the initial pop the shares cooled down to $0.77, up 4.2% from previous close.

Is now the time to buy TPI Composites? Access our full analysis report here, it’s free.

What Is The Market Telling Us

TPI Composites’s shares are extremely volatile and have had 109 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock dropped 7.8% on the news that the stock continued its slide following a recent analyst downgrade and persistent concerns over the company's debt. The negative sentiment follows a downgrade from TD Cowen on July 8, which lowered its rating on the wind blade manufacturer to "Hold" from "Buy" and slashed its price target in half to $1.00. The firm cited significant worries about the company's heavy debt load and the lack of a clear plan for deleveraging. 

Adding to the pressure, Jefferies maintained its "Sell" rating on July 11 with a price target of just $0.70. Analysts have pointed to the company's high leverage and potential liquidity issues as major challenges. These concerns are compounded by broader policy risks, such as the potential phasing out of key Production Tax Credits after 2027, which could create a "demand cliff" for the company's products.

TPI Composites is down 56.9% since the beginning of the year, and at $0.77 per share, it is trading 84.7% below its 52-week high of $5.03 from July 2024. Investors who bought $1,000 worth of TPI Composites’s shares 5 years ago would now be looking at an investment worth $29.37.

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