Avondale Upgrades SunEdison To Market Outperform

• Sunedison Inc SUNE shares have plunged 88.96 percent over the past six months, falling almost to their 52-week low on November 20, at $2.82.
• Avondale analysts have upgraded the rating on the company to Market Outperform.
• The upgrade follows a huge capital raise by the company, which offers the business liquidity to fund growth during 2016.

According to the Avondale report, “Management has made significant progress restructuring the company's balance sheet, and SUNE's deeply distressed valuation does not reflect the value of its underlying assets.”

Sunedison now has more than $500 million in new cash, following the debt exchange and capital raise worth $1.3 billion.

Related Link: Bearish Analyst Who Nailed The Downside In SunEdison Upgrades Stock

Justification

The analysts therefore believe that the model is now substantially de-risked, “allowing investors to focus on the company's ability to generate up to $1 billion in cash flow between now and its next debt maturities in early 3Q18.

In addition, the company has significantly enhanced transparency and now provides greater visibility into cash flow and operations over the coming four quarters, which the analysts state is rarely seen in the public markets.

“With liquidity issues in the rearview, management can refocus on executing on a large and growing renewable energy opportunity set,” the report added.