Sell Rating for SolarEdge Technologies Amid Margin Pressures and Market Uncertainties

Analyst Andrew Percoco of Morgan Stanley maintained a Sell rating on SolarEdge Technologies (SEDG – Research Report), boosting the price target to $11.00.

Andrew Percoco has given his Sell rating due to a combination of factors impacting SolarEdge Technologies. Despite the company’s strong first-quarter results and optimistic second-quarter guidance, there are significant concerns about future performance. The expected margin pressures due to tariffs are a major concern, with management anticipating a noticeable impact on gross margins throughout 2025, which could affect the company’s profitability.
Additionally, price concessions in Europe and a lower mix of optimizer shipments have led to a decrease in average selling prices, which could further strain financial performance. Although there is an expectation for a rebound in the latter half of 2025, the current market conditions and uncertainties surrounding demand make it challenging to predict a turnaround. Consequently, despite the recent positive results, the potential downside risk has led to a Sell rating with a price target that suggests a 23% decline.

According to TipRanks, Percoco is a 3-star analyst with an average return of 5.5% and a 46.84% success rate. Percoco covers the Technology sector, focusing on stocks such as SolarEdge Technologies, First Solar, and Shoals Technologies Group.

In another report released on April 24, Guggenheim also downgraded the stock to a Sell with a $5.00 price target.