Mark Strouse, an analyst from J.P. Morgan, maintained the Buy rating on SolarEdge Technologies (SEDG – Research Report). The associated price target was lowered to $18.00.
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Mark Strouse has given his Buy rating due to a combination of factors that highlight SolarEdge Technologies’ potential for growth and market positioning. The company reported first-quarter results that slightly exceeded expectations, with revenue from continuing operations surpassing forecasts. Additionally, SolarEdge’s guidance for the second quarter revenue was also above expectations, despite the challenges posed by U.S. tariffs. The company has taken steps to mitigate the impact of these tariffs, and its strategic adjustments to the supply chain and pricing are expected to reduce the tariff headwinds in the future.
Furthermore, SolarEdge is trading at a significant discount compared to its historical trading multiples and its peer, Enphase Energy. This valuation, combined with the company’s increased visibility into channel inventory clearing and market share gains, positions it well for future growth. The company’s differentiated technology and its role in the expanding global solar and storage market further support the Buy rating. These factors suggest that SolarEdge is poised to outperform in the solar sector over time.