TD Cowen Downgrades TPI Composites (TPIC) to a ‘Hold’ but Echoes High Production Volume

TPI Composites, Inc. (NASDAQ:TPIC) is one of the best green energy penny stocks to buy right now. On July 8, TD Cowen downgraded the stock to a ‘Hold’ from a ‘Buy’ and cut the price target to $1 from $2. The adjustment comes amid concerns about mounting policy risks and capital structure.

TD Cowen Downgrades TPI Composites (TPIC) to a ‘Hold’ but Echoes High Production Volume

A close-up of renewable energy turbines capturing the power of a windy sky.

The research firm is wary that the Offshore Backup Bipartisan Budget (OBBB) will have a significant impact on TPI Composite operations. That’s because the legislation will do away with product tax credits after 2027, which could trigger a substantial dip in demand for the company’s wind blades.

Nevertheless, the research firm is bullish on the company securing production volumes through 2025. The new orders are expected to provide some form of stability for the business.

TPI Composites, Inc. (NASDAQ:TPIC) designs, manufactures, and supplies composite wind blades for the wind energy market. It is the largest independent manufacturer of composite wind blades globally.

While we acknowledge the potential of TPIC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TPIC and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.