On Wednesday, Tigo Energy (NASDAQ:TYGO) saw its price target increased to $1.50 from $1.40, while the stock's rating remained at Neutral. The adjustment followed the company's release of its first-quarter results and second-quarter revenue guidance, which indicated a mixed performance and a weaker than expected outlook.
Tigo Energy, which has experienced a significant drop in its stock value, approximately 95% from its peak in 2023, is undergoing a destocking process that is anticipated to extend into the third quarter of the year, contrary to earlier forecasts of completion by the end of the first quarter.
The company's management has expressed confidence in achieving EBITDA breakeven in the second half of 2024, projecting revenues in the range of $33-35 million. Additionally, they have identified a revenue threshold of $17-19 million as the point for achieving cash flow breakeven.
Despite the challenges faced by Tigo Energy in the near term, the firm has identified the potential for upside risk in the stock's valuation. The firm has decided to maintain a Neutral stance on Tigo Energy shares until there is greater clarity and visibility into the company's performance and financial position.
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