Northland raises SolarEdge stock to Market Perform, PT at $15.50

On Friday, Northland analyst Gus Richard changed the rating for SolarEdge Technologies (NASDAQ:SEDG) from Underperform to Market Perform, while maintaining a price target of $15.50 for the company’s shares. The upgrade follows a notable decline in SolarEdge’s share price since May 16, 2025, with the stock dropping 24% in the past week alone. According to InvestingPro data, analyst targets for SEDG currently range from $5 to $27, reflecting mixed sentiment surrounding the US tax spending bill.

Richard noted that despite the uncertainty regarding the final form of the US legislation, one thing remains clear: utility-scale solar is the most cost-effective and rapid means of increasing generation capacity. SolarEdge is particularly well-positioned as a non-Chinese supplier with strong cybersecurity capabilities, which supports the decision to upgrade the stock rating. InvestingPro analysis reveals that while the company maintains strong liquidity with a current ratio of 2.04, it faces challenges with negative profit margins and cash burn. Subscribers can access 13 additional ProTips and comprehensive financial metrics through the Pro Research Report.

The analyst highlighted the dominance of solar energy in the US grid interconnect queue, where 80% of the 2.6 terawatts is comprised of battery and solar projects, with the majority being solar. Solar developers and power producers are reportedly securing 18 to 24 months’ worth of essential components, such as solar panels and batteries, in anticipation of continued growth.

Utility-scale solar is currently the least expensive option for producing electricity. In contrast, it takes approximately five years to commission a natural gas generation plant and a decade for a nuclear plant. The international market for utility-scale solar energy remains robust as well.

Electricity demand is on the rise both in the United States and globally, driven by the electrification of transportation and buildings, as well as the increasing needs of AI data centers. This growth in demand underscores the strategic positioning of SolarEdge within the industry. Richard’s commentary provided a detailed rationale for the upgraded stock rating and sustained price target for SolarEdge Technologies. Based on InvestingPro Fair Value analysis, the stock appears fairly valued at current levels. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides expert analysis on SEDG and 1,400+ other top stocks.

In other recent news, SolarEdge Technologies has been the focus of several analyst updates and legislative developments. Guggenheim analysts have pointed out that changes in the Inflation Reduction Act could negatively impact residential solar companies like Sunrun (NASDAQ:RUN) and SolarEdge, due to alterations in tax credits for leased solar systems. However, First Solar (NASDAQ:FSLR) appears to benefit from unchanged manufacturing subsidies, which Guggenheim views positively for the company. Meanwhile, GLJ Research has raised its price target for SolarEdge to $6.90, citing concerns over the company’s revenue recognition practices and the impact of rising U.S. Treasury yields on the solar sector.

Citi maintains a Buy rating on SolarEdge, setting a price target of $39, despite broader industry challenges highlighted by workforce reductions at other tech firms like Schrödinger. In contrast, Northland downgraded SolarEdge from Outperform to Market Perform, maintaining a price target of $15.50, due to valuation concerns and uncertainties surrounding U.S. tax policies. Additionally, UBS reduced its price target for SolarEdge to $17, following the company’s first-quarter earnings report, while maintaining a Neutral rating. UBS highlighted SolarEdge’s adjusted EBITDA forecasts and noted the need for consistent performance and policy clarity before reconsidering the stock’s rating.

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