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On Friday, Deutsche Bank (ETR:DBKGn) maintained its Hold rating on shares of SolarEdge Technologies (NASDAQ:SEDG) with a steady price target of $10.00. The firm acknowledged the company's leadership change as SolarEdge announced Shuki Nir as the new CEO, succeeding interim CEO and former CFO Ronen Faier.
The announcement comes during a challenging period for the company, with the stock down over 86% year-to-date and its market capitalization now at $730 million.
According to InvestingPro analysis, the stock appears undervalued at current levels, though it faces significant headwinds. Shuki Nir, who stepped into the role of Chief Marketing Officer for SolarEdge in June 2024, previously held a General Manager position at SanDisk in the consumer business sector.
The appointment represents a significant shift for SolarEdge, as previous CEOs had lengthy histories within the company. For example, Zvi Lando was a part of SolarEdge's Board of Directors for approximately 15 years and worked at the company for an additional 9 years before becoming CEO.
Similarly, Ronen Faier joined SolarEdge in 2011 and served as CFO for around 14 years before stepping in as interim CEO. Faier also has a background with SanDisk, having worked at Msystems before its acquisition by SanDisk.
This transition in leadership comes after an earlier change in the CFO position, when Ronen Faier was replaced by Ariel Porat in mid-June 2024. The new CEO and CFO of SolarEdge collectively have about 4 years of experience at the company, which contrasts with the previous CEO/CFO team's combined tenure of approximately 30 years.
The recent executive changes mark a new era for SolarEdge as the company navigates its future in the solar technology industry. InvestingPro data reveals concerning trends, including a 70% revenue decline and negative profit margins. Subscribers to InvestingPro can access 18 additional key insights and a comprehensive Pro Research Report covering SolarEdge's financial health and future prospects.
In other recent news, SolarEdge Technologies has seen significant changes and challenges. The company recently appointed Shuki Nir, former Chief Marketing Officer, as the new CEO. This change in leadership comes during a period of financial strain for SolarEdge, with a notable shortfall in third-quarter earnings. The company reported earnings per share (EPS) of -$15.33, significantly below the forecasted -$1.65, and total revenues of $261 million.
SolarEdge also reported a GAAP net loss of $1.2 billion, largely due to substantial inventory write-downs. Amid these developments, BMO Capital and Oppenheimer have maintained their Market Perform and Perform ratings on SolarEdge respectively, citing the company's need to focus on cash management and conversion ahead of a $345 million convertible bond maturing in September.
Furthermore, SolarEdge is expected to enter a product redesign phase and introduce new products to the market by late 2025 or early 2026. The company provided revenue guidance for Q4 2024 between $180 million and $200 million and aims to return to positive free cash flow by the first half of 2025. These are the recent developments as SolarEdge navigates market challenges and strategizes for future growth.
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