SolarEdge Technologies ( (SEDG) ) has fallen by -9.20%. Read on to learn why.
SolarEdge Technologies has experienced a significant stock price decline of 9.20% over the past week. This downturn is attributed to a series of analyst actions and market challenges. Barclays analyst Christine Cho raised the price target slightly but maintained an Underweight rating, citing increased installation costs due to tariffs on solar equipment and lithium iron phosphate battery cells from China. Meanwhile, Jefferies and Susquehanna both lowered their price targets, with Jefferies highlighting concerns about the company’s gross margin and Susquehanna expressing caution due to tariff risks and uncertainties in the market.
Further complicating matters for SolarEdge Technologies, RBC Capital also reduced its price target, pointing to potential risks from tariffs on Chinese imports, which could lead to project delays and investment postponements. The company is facing additional challenges, such as weak permit data in the U.S., excess inventory in Europe, and uncertainty surrounding the Inflation Reduction Act and tax credit sales. These factors are affecting the company’s ability to generate positive cash flow, especially with a convertible debt looming in the near future.
Analysts like Jeff Osborne from TD Cowen and Canaccord Genuity have maintained Hold ratings on SolarEdge, reflecting the ongoing concerns about demand deterioration in Europe and the company’s liquidity position. Despite being less exposed to tariffs compared to some competitors, SolarEdge is grappling with the need to launch new products and manage an anticipated demand rebound later in the year. The combination of these challenges has contributed to the recent decline in the company’s stock price.