Cautious Outlook: Gordon Johnson Recommends Sell Rating for SolarEdge Technologies Amidst Temporary Gains and Financial Headwinds

GLJ Research analyst Gordon Johnson reiterated a Sell rating on SolarEdge Technologies (SEDG – Research Report) yesterday and set a price target of $6.90.

Gordon Johnson has given his Sell rating due to a combination of factors impacting SolarEdge Technologies. Despite a recent surge in the company’s stock price, Johnson questions the sustainability of this growth, highlighting that the company still reported negative earnings per share. The recent stock price increase seems to be driven by temporary factors, such as policy changes and one-time revenue gains, rather than a fundamental improvement in the company’s core business.
Additionally, Johnson points out ongoing challenges, including expected margin pressures due to tariffs and pricing concessions in Europe. The company’s guidance suggests continued financial headwinds, with anticipated losses and a lack of transparency regarding one-time revenue recognition. These elements contribute to a cautious outlook, leading Johnson to recommend a Sell rating for SolarEdge Technologies.

In another report released on May 16, Northland Securities also downgraded the stock to a Sell with a $15.50 price target.