(Bloomberg) -- SunPower Corp. shares plunged 42% on Friday as Guggenheim Securities cut the solar equipment firm’s price target to zero and said the stock may soon be delisted.
“The company is entering a wind-down process that will likely end in the sale of the company’s remaining assets and the delisting of the equity,” Guggenheim analyst Joseph Osha wrote in a research note Friday, in which he cut the price target on the stock to zero from $1. He called it a “sad end for an industry pioneer.”
SunPower dropped below $1 to trade at an all-time low of 88 cents per share on Friday, widening its three-day rout to more than 65%. The company told dealers on Wednesday it would halt new shipments and leases, which prompted firms including Piper Sandler and Evercore ISI to suspend their coverage of the stock.
“Considering the debt that the company has accumulated, we believe that SPWR’s equity no longer has any value, and our price target is now $0,” analysts Osha and Hilary Cauley wrote in the note.
SunPower didn’t immediately respond to a request for comment.
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