Morgan Stanley has revised its outlook on SolarEdge Technologies (SEDG, Financial), lowering its rating from Equal Weight to Underweight. The investment firm's analyst, Andrew Percoco, has also significantly reduced the price target for the company, setting it at $10, down from the previous target of $18.
The downgrade comes as SolarEdge faces several hurdles, including declining demand in its end markets and potential earnings pressure due to tariffs. Furthermore, the company's vulnerability to shifts in the Inflation Reduction Act could pose additional challenges.
Another critical concern for SolarEdge is its "tight" liquidity situation. With debt maturities approaching, the company is under pressure to execute its strategies flawlessly, as any misstep could amplify risks, particularly in the current economic landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for SolarEdge Technologies Inc (SEDG, Financial) is $18.46 with a high estimate of $100.00 and a low estimate of $3.90. The average target implies an upside of 41.42% from the current price of $13.05. More detailed estimate data can be found on the SolarEdge Technologies Inc (SEDG) Forecast page.
Based on the consensus recommendation from 33 brokerage firms, SolarEdge Technologies Inc's (SEDG, Financial) average brokerage recommendation is currently 3.3, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for SolarEdge Technologies Inc (SEDG, Financial) in one year is $54.00, suggesting a upside of 313.79% from the current price of $13.05. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the SolarEdge Technologies Inc (SEDG) Summary page.
