J.P. Morgan analyst Mark Strouse maintains $SolarEdge Technologies (SEDG.US)$ with a buy rating, and adjusts the target price from $29 to $18.
According to TipRanks data, the analyst has a success rate of 47.1% and a total average return of 8.1% over the past year.
Furthermore, according to the comprehensive report, the opinions of $SolarEdge Technologies (SEDG.US)$'s main analysts recently are as follows:
SolarEdge's recent performance has been influenced by several headwinds, including diminished demand in Europe, reduced selling prices referred to as 'fire-sale' levels, and expectations of a narrower EBITDA margin continuing at least until 2026. Additionally, there is concern regarding the potential loss of tax credits and a slowing of U.S. growth in the event of a second term for President Trump. The forecast for the company is further clouded by limited visibility into the recovery of demand in Europe and a definitive timeline for achieving positive EBITDA.
The assessment of SolarEdge's financial outlook has been adjusted due to a weaker than expected Q4 guidance, indicating an underestimation of the revenue and margin bottom, particularly as conditions in the European market continue to deteriorate. The upcoming period is pivotal for SolarEdge, considering the approaching debt maturity in September 2025 coupled with a recent quarter showing a decline in free cash flow amounting to $111M.
The outlook for SolarEdge is being challenged by ongoing issues in Europe, with expectations for the fourth quarter falling significantly short of consensus.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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