Goldman Sachs thinks Maxeon Solar Technologies will see eye-popping gains despite the company’s recent earnings disappointment. Analyst Brian Lee maintained his buy rating on the Singapore-based solar panel maker. He did lower his 12-month price target on the stock by $3 to $18, but that still implies shares can go up 195% from Wednesday’s close. Shares of the solar company plunged 14% on Thursday, reaching a 52-week low, after Maxeon reported third-quarter results that missed analysts’ expectations by a wide margin. The company also lowered its guidance for the fourth quarter and full year. MAXN 1D mountain Maxeon falls “These trends are likely to continue into 4Q23 and management cut full-year revenue guidance to $1.11bn-$1.15bn (vs. prior of $1.25bn-$1.35bn) to reflect this weakness,” Lee said, adding that challenging demand and seasonality in the residential market is weighing on the company. “We remain Buy rated but acknowledge near-term [distributed generation] headwinds and margins to be key focus areas into year-end.” Distributed generation refers to electricity generated close to where it’s being used as opposed to a centralized location such as a plant. But a positive catalyst for the stock going forward, Lee noted, is that Maxeon announced a settlement on Wednesday with residential solar technology provider SunPower . The company will supply modules to SunPower through February 2024, and SunPower will maintain its rights to distribute M-Series products in the U.S. until March of next year. After March, Maxeon will be able to sell its M-Series panels to non-SunPower installers throughout the country. Maxeon had also acquired competitor Solaria’s shingle-celled technology patents in September. The stock is down nearly 65% for the year.