SolarEdge Technologies (SEDG – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Jeff Osborne from TD Cowen maintained a Hold rating on the stock and has a $18.00 price target.
Jeff Osborne’s rating is based on several challenges facing SolarEdge Technologies. The company is experiencing weak permit data in the U.S. and excess inventory in Europe, which creates a challenging environment. Additionally, uncertainty surrounding the Inflation Reduction Act (IRA) and a slowdown in tax credit sales are complicating the company’s ability to generate positive free cash flow in the first half of 2025, ahead of a convertible debt due in September.
Osborne also highlights concerns about demand deterioration in Europe and the company’s liquidity position, particularly in relation to its ability to pay down the convertible debt with available cash. The lack of recent tax credit sales and a slowdown in safe harbor activity further emphasize the need for the company to monetize its inventory to support cash generation. While SolarEdge is less exposed to tariffs compared to some competitors, the company still faces challenges in launching new products and addressing an expected demand rebound later in the year.
In another report released on April 3, Canaccord Genuity also maintained a Hold rating on the stock with a $19.00 price target.