Barclays reiterates Equalweight rating on SolarEdge stock at $29 target

Published 07/08/2025, 19:48
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - Barclays (LON:BARC) maintained its Equalweight rating and $29.00 price target on SolarEdge Technologies (NASDAQ:SEDG) in a research note released Thursday. Currently trading at $24.49, the stock is fairly valued according to InvestingPro calculations, with analyst targets ranging from $5 to $29.

The investment bank highlighted SolarEdge’s strong positioning to gain market share in the U.S. commercial and industrial (C&I) solar sector, particularly due to domestic content requirements and foreign entity of concern (FEOC) restrictions.

According to Barclays, SolarEdge currently holds approximately 20% of the overall C&I market, which totals around 4 gigawatts split evenly between rooftop and ground mount installations. In the rooftop C&I segment specifically, the company commands a 40-50% market share.

Barclays noted that SolarEdge’s main competitors in the rooftop C&I space, Chint and SMA, appear to lack significant domestic manufacturing capabilities. This could allow SolarEdge to capture additional market share among buyers seeking products that meet domestic content requirements, while Chint products would likely violate FEOC provisions due to Chinese ties.

The research firm pointed out that while opportunities exist in the ground mount segment where SolarEdge has less presence, inverters contribute less to meeting domestic content thresholds in ground mount applications compared to rooftop installations.

In other recent news, SolarEdge Technologies reported second-quarter revenue that exceeded expectations by $37 million, reaching $289.41 million. This figure surpassed the consensus estimate of $273.63 million and marked a 32% increase from the previous quarter. The company posted an adjusted loss of $0.81 per share, which was better than analyst projections of an $0.85 loss. Despite this positive revenue performance, GLJ Research maintained its Hold rating on SolarEdge, expressing concerns that the revenue beat might be attributed to temporary factors rather than organic demand growth. The firm also noted a decline in SolarEdge’s Deferred Revenue and Customer Deposits by $39.3 million quarter-over-quarter, nearly matching the revenue beat. These developments have led to a surge in SolarEdge shares, reflecting investor optimism.

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