Major renewable energy firm SunEdison is expected to reduce guidance on project completions for 2016, according to an investor note from Deutsche Bank analyst, Vishal Shah.
SunEdison is preparing to update investors on its ‘Global Optimization Plan,’ that is expected to include a headcount reduction after its recent M&A activity during a conference call to be held this Wednesday.
According to Shah, SunEdison is expected to provide updated guidance on 2016 project completion targets, which includes both PV and Wind projects.
The Deutsche Bank senior analyst said in an investor note that its installation target was expected to be lowered from 4.35GW to a range between 2.5GW to 3GW.
However, Shah remains upbeat on SunEdison as the optimization plan focused on achieving positive cash flows ahead of previous guidance, depending on the level of cost savings the plan is intended to deliver.
The Deutsche Bank analyst also highlighted that he expected SunEdison to provide an update on the timing of the closure of the acquisition of Vivint Solar, a key contentious issue with many analysts and investors as an acquisition too far and not core to its current business focus.
“Bottom line: we believe the company can pull a number of levers – cut opex, lower growth outlook, sell projects to third parties in order to achieve positive operating cash flow,” noted Shah in the investor note.