SolarEdge cut to Sell at Goldman Sachs amid challenging valuation

Goldman Sachs downgraded SolarEdge (SEDG) to Sell from Neutral with a price target of $31, down from $36, as part of a broader research note previewing Q1 results in Solar. The firm is citing elevated expectations and challenging valuation for SolarEdge, especially when considering margin gains tied mostly to 45X credits, the analyst tells investors in a research note. The stock’s recent rally also suggests expectations for potential upside from a material improvement in European demand, stemming from rising energy prices following the outbreak of war in Iran, appear to be creating a higher bar of expectations, the firm added.