SolarEdge cut to Sell equivalent at Jefferies but stock still gains

SolarEdge Technologies (NASDAQ:SEDG) +1.9% in Tuesday’s trading even after Jefferies downgrades shares to Underperform from Hold with a $17 price target, cut from $27, looking at the company more negatively following last week’s RE+ solar industry event.

Jefferies analysts Dushyant Ailani and Paul Zimbardo cite significant headwinds in Europe from persistently high inventory levels and Chinese competition, as well as stiff competition in the U.S., anticipating more downside to SolarEdge (SEDG) shares as estimates are revised lower.

The bank previously initiated on SolarEdge (SEDG) with a Hold rating on hopes of gaining more confidence coming out of RE+, but that did not pan out, as the conference forecast a longer than expected muted outlook in Europe with stiff competition continuing in a recovering U.S.

Following its conversations at RE+, Jefferies said it lowered ASPs further and is now 13% below 2025 consensus and down 14% Y/Y.