SolarEdge Technologies ( (SEDG) ) has fallen by -31.11%. Read on to learn why.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
SolarEdge Technologies has experienced a significant drop in its stock price over the past week, declining by 31.11%. This sharp decrease is largely attributed to a series of downgrades and lowered price targets by major financial firms. RBC Capital, for instance, reduced its price target for SolarEdge from $14 to $12, citing the proposed Senate reconciliation bill’s impact on clean energy estimates and tax credits. The bill’s provisions, particularly those affecting residential solar leases and tax credits, have led to lowered demand and margin assumptions for companies like SolarEdge.
Adding to the pressure, KeyBanc downgraded SolarEdge to Underweight from Sector Weight, setting a price target of $16. This downgrade reflects concerns over the Senate’s proposed tax changes, which are seen as unfavorable to the solar industry. Analysts have noted that the restrictions on tax credits could significantly impact SolarEdge’s financial performance, especially in the residential solar market. The company’s recent earnings report, which showed a net loss, further compounded investor concerns.
Moreover, GLJ Research also downgraded SolarEdge to Sell from Hold, maintaining a price target of $6.90. The firm highlighted that the Senate’s tax-and-spend bill language was surprisingly bearish, with no revival of the 48E 30% tax credit for solar companies. This lack of support, coupled with ongoing struggles in the U.S. and European markets, has led to a pessimistic outlook for SolarEdge. As a result, investors are wary of the headwinds facing the company, contributing to the steep decline in its stock price.