JPMorgan Downgrades SolarEdge Technologies (SEDG) to Neutral

JPMorgan analyst Mark Strouse downgraded SolarEdge Technologies (NASDAQ: SEDG) from Overweight to Neutral with a price target of $23.00 (from $18.00).

The analyst comments: "We believe SolarEdge’s relatively higher exposure to the lease/PPA market should allow the company to regain share and we are increasing our estimates accordingly. SEDG’s 45x manufacturing credits are unchanged from the IRA, and tax credit transferability rules are also unchanged, meaning that SEDG should likely continue its cadence of quarterly transfers. We believe the larger driver for the stock will be the new management’s focus on efficiency and SKU rationalization, for which we are encouraged by initial progress, though it is still early. Given SEDG’s outperformance since May 1 (up 109% vs coverage average up 33%), we are downgrading to Neutral and look for pullbacks or signs of stronger than expected market share gain and/or margin expansion to add to positions. Our YE25 price target goes to $23, from $18, based on our increased FY26 estimates and an increased assigned P/E multiple of 22x (from 19x), a slight premium to the assigned multiple for ENPH given stronger revenue visibility."

For an analyst ratings summary and ratings history on SolarEdge Technologies click here. For more ratings news on SolarEdge Technologies click here.

Shares of SolarEdge Technologies closed at $26.72 yesterday.

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