Jefferies raises SolarEdge stock price target to $18 from $10 on tax credit changes

Published 14/07/2025, 15:34
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - Jefferies raised its price target on SolarEdge Technologies (NASDAQ:SEDG) to $18.00 from $10.00 on Monday while maintaining an Underperform rating on the stock. According to InvestingPro data, the stock appears fairly valued at current levels, with analysts’ targets ranging from $5 to $29.

The price target increase follows a 62% rise in SolarEdge shares since mid-June when the Senate reintroduced residential leasing under the 48E tax credit provision, according to Jefferies.

The firm noted that SolarEdge’s stock performance has been driven by its ties with Sunrun (NASDAQ:RUN) and potential uplift in the commercial and industrial segment due to Foreign Entity of Concern restrictions on competitors.

Despite the higher price target, Jefferies sees limited upside potential for SolarEdge as long-term headwinds persist, including weak residential outlook after the 48E tax credit changes, third-party ownership pivot to storage, and weak European demand.

The firm also mentioned that while there might be some reprieve from potential short covering, it doesn’t expect investors to capitalize on it, and uncertainty around executive orders could add downside risk.

In other recent news, SolarEdge Technologies has seen several noteworthy developments. The company held its annual shareholder meeting, where six directors were elected to the board, and Kost Forer Gabbay & Kasierer was ratified as the independent auditor for the fiscal year ending December 2025. In terms of analyst activity, KeyBanc Capital Markets upgraded SolarEdge from Underweight to Sector Weight, citing the upcoming expiration of residential solar tax credits as a challenge but noting the company is better positioned than some competitors. UBS analyst Jon Windham raised the price target for SolarEdge shares from $17.00 to $20.00, maintaining a Neutral rating and highlighting potential impacts from policy changes on the U.S. rooftop solar market.

Meanwhile, Bank of America analysts have reduced their estimates for SolarEdge due to increased policy risks, noting a projected decline in U.S. volumes for 2026. GLJ Research upgraded SolarEdge’s stock rating from Sell to Hold, influenced by potential legislative support for solar energy tax credits from a "Solar Friendly" Senate. The upgrade reflects a reassessment of the short-term risk/reward balance for SolarEdge’s stock, despite concerns about the company’s business model and market challenges. These recent developments underscore the complex environment SolarEdge is navigating, with policy changes and market dynamics playing significant roles in shaping its outlook.

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