- Analyst Gordon Johnson said refinancing deals are costly
- Axiom upgraded SunEdison to hold in research note last week
SunEdison Inc., the worst-performing clean energy company, fell the most in five days after analyst Gordon Johnson at Axiom Capital Management raised concern about the company’s costly debt restructuring.
SunEdison fell 9.6 percent to $3.02 at the close in New York, the biggest decline since Jan. 7. The shares have declined 85 percent in the past year, the most on the WilderHill New Energy Global Innovation index of 104 companies.
SunEdison spent billions last year to expand on six continents, becoming the world’s biggest clean-energy developer. Its shares tumbled in the second half of 2015 as investors began voicing concern about the Maryland Heights, Missouri-based company’s increasing debt load, which reached $11.7 billion at the end of the third quarter.
“SunEdison amassed a massive amount of debt,” Johnson said on Benzinga’s PreMarket Prep morning podcast Tuesday. “SunEdison was very aggressive in the way they were bidding for projects. If they’re unable to sell those projects, I don’t know how much longer the equity can last.”
Johnson raised his rating on the shares to the equivalent of neutral from sell in a Jan. 8 research note and has a 12-month target price of $2 a share.