SolarEdge Technologies (SEDG) +10.3% in Tuesday’s trading as Bank of America upgraded shares to Neutral from Underperform with a $40 price target, raised from $17, saying revenue, margin trajectory, and liquidity have “stabilized enough to materially reduce downside risk,” even as U.S. residential solar volumes likely will fall sharply in 2026.
“Importantly, a market share rotation is underway, with SEDG regaining the #1 U.S. [residential] inverter share in 2Q-3Q ’25 for the first time since 3Q ’21, driven by a higher TPO mix, which is taking share as cash/loan volumes collapse and the rollout of single-SKU inverters that simplify dealer operations,” BofA’s Dimple Gosal wrote.
SolarEdge’s (SEDG) upside is limited by weak end markets, uncertain free cash flow durability, and European Union softness, which together cap visibility on sustained margin recovery, while downside also is more balanced as inventories have cleared, gross margin has normalized, and liquidity risk has eased, according to the analyst, who said the stock now trades at fair value.