Monday, Stifel analysts have maintained a Hold rating on TPI Composites (NASDAQ:TPIC) with a steady price target of $3.50. The firm's analysts cited ongoing uncertainty in Turkiye as a persistent issue for the company, which specializes in global wind blade manufacturing.
Despite challenges faced in recent years, TPI Composites has seen strong recent utilization rates, and analysts view the medium-term fundamentals for the company as positive. According to InvestingPro data, the company's current market capitalization stands at $84.6 million, with the stock showing high volatility and a significant 7.7% return over the past week.
TPI Composites has been navigating through various headwinds, and the situation in Turkiye in 2025 continues to pose risks. The company's performance has shown some resilience, with robust utilization signaling potential for growth, though InvestingPro analysis reveals concerning financial metrics, including negative gross profit margins and significant debt burden of $740 million.
Stifel's comparison of TPI Composites to Jeff McNeil, a current NY Met known for his past achievements and potential despite recent setbacks, underscores the company's capacity for recovery and success. InvestingPro subscribers have access to 14 additional key insights about TPIC's financial health and growth prospects.
The analysts emphasized that while the uncertainty in Turkiye is a significant factor that could affect TPI Composites' prospects in 2025, there are also positive indicators. The company's strong utilization points to an effective use of its manufacturing capabilities, which could bode well for its future performance, despite current revenue decline of 15.5% and negative EBITDA of $117.6 million in the last twelve months.
Maintaining the $3.50 target price, Stifel analysts suggest that the stock currently reflects an appropriate valuation given the mix of challenges and potential opportunities ahead. The Hold rating indicates that the analysts advise investors to maintain their positions in TPI Composites' stock without additional buying or selling actions at this time.
In summary, Stifel's outlook on TPI Composites acknowledges the difficulties the company faces, particularly concerning its operations in Turkiye. However, the firm also recognizes the company's strengths and potential for improvement, leading to the decision to reaffirm the Hold rating and $3.50 price target.
In other recent news, TPI Composites faced several rating downgrades amid mounting uncertainties. JPMorgan (NYSE:JPM) shifted its stance from Overweight to Neutral on the wind blade manufacturer, citing concerns over U.S. onshore wind incentives, tariff structures, and competition from Chinese manufacturers.
Similarly, Morgan Stanley (NYSE:MS) downgraded the company's stock from Equalweight to Underweight, with a new price target of $2.00 due to heightened competition and a protracted recovery period for the U.S. onshore wind sector. Jefferies also reduced TPI Composites' stock price target to $2.30, maintaining a hold rating due to mixed execution performance and increased macroeconomic uncertainty.
Despite these challenges, recent developments indicate a 2.8% rise in the company's third-quarter net sales for 2024 to $380.8 million, with adjusted EBITDA jumping to $8 million from $0.2 million the previous year. TPI Composites is planning to reopen its Iowa plant by mid-2025 and is exploring potential capacity expansion at a brownfield site, despite a projected 40% drop in Turkish volumes for 2025 and a revised adjusted EBITDA outlook to a loss of about 2% for 2024.
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