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On Thursday, UBS analyst Jon Windham adjusted the price target for SolarEdge Technologies (NASDAQ:SEDG), reducing it to $17.00 from the prior $22.00, while keeping a Neutral rating on the shares. The new target aligns closely with the current trading price of $17.30, while analyst targets across Wall Street range from $5 to $27. Windham’s decision followed the company’s first-quarter earnings of 2025, which showed an adjusted EBITDA slightly above the market consensus. According to InvestingPro data, the company’s EBITDA for the last twelve months stands at -$1.29 billion. Additionally, SolarEdge provided financial guidance for the second quarter of 2025.
The UBS analyst has updated the adjusted EBITDA forecasts for the years 2025 through 2027 to $(161) million, $148 million, and $205 million, respectively. These figures were previously set at $(173) million, $173 million, and $187 million. This revision takes into account the results from the first quarter, management’s expectations for future shipments, and the discontinuation of non-core operations at SolarEdge. InvestingPro analysis reveals concerning metrics, including negative gross margins of -87.14% and rapid cash burn, with nine analysts recently revising earnings expectations downward.
These changes in EBITDA projections have led to alterations in the adjusted earnings per share (EPS) estimates for the years 2025 to 2027. Despite the adjustment to the price target, the UBS analyst has chosen to maintain the Neutral rating on SolarEdge stock.
The analyst noted that while the first quarter results of 2025 indicate substantial progress in the company’s operational turnaround, a more consistent performance and a clearer view on policy are necessary before changing the stock’s rating. Windham’s commentary suggests a cautious approach, acknowledging SolarEdge’s positive steps but also signaling the need for further evidence of sustained improvement.
In other recent news, SolarEdge Technologies has introduced a solar-powered electric vehicle (EV) charging system for businesses, showcased at Intersolar Europe 2025. This system aims to optimize energy costs by utilizing solar power, reportedly saving about 70% for initial beta customers. Meanwhile, Canaccord Genuity has increased its price target for SolarEdge from $14.00 to $16.50, maintaining a Hold rating. This adjustment reflects potential market share gains in Europe and the impact of tariffs on the company’s financial outlook.
BMO Capital Markets has reiterated an Underperform rating with a $14.00 target, citing a challenging period for SolarEdge’s stock levels despite better-than-expected second-quarter guidance. Northland has upgraded SolarEdge from Underperform to Market Perform, though it reduced the price target to $12.50, noting the company’s positive cash flow and cost reduction efforts. In contrast, Morgan Stanley (NYSE:MS) downgraded SolarEdge to Underweight, lowering the price target to $10, due to concerns over declining demand and potential tariff impacts. These developments highlight the varied analyst perspectives on SolarEdge’s current market position and future prospects.
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