UBS raises SolarEdge stock price target to $30 on TPO market shift

Published 19/08/2025, 11:58
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com - UBS raised its price target on SolarEdge Technologies (NASDAQ:SEDG) to $30.00 from $20.00 on Tuesday, while maintaining a Neutral rating on the stock. The company’s shares have shown remarkable momentum, gaining over 24% in the past week and trading near its 52-week high of $33.30. According to InvestingPro data, the stock has demonstrated significant volatility, with a beta of 1.57.

The investment firm cited SolarEdge’s potential to increase its U.S. residential inverter market share due to the solar market’s shift toward leased systems, known as the third-party ownership (TPO) model.

UBS highlighted SolarEdge’s established relationships with TPO partners and products specifically designed to support this business model as key advantages for the company.

Despite the positive outlook for market share gains, UBS noted that the overall U.S. residential demand forecast remains negative due to the loss of homeowner solar tax credits in the OBBB, with both SolarEdge and competitor Enphase pointing to a potential 20% total U.S. solar market decline in 2026.

UBS also believes SolarEdge is well-positioned to gain share in the commercial and industrial segment, where foreign entity of concern (FEOC) restrictions could potentially eliminate competitors for customers seeking tax credits.

In other recent news, SolarEdge Technologies has successfully stabilized inventory levels in its distribution channels, according to CEO Shuki Nir, aiming to reduce working capital without further price actions. The company’s recent quarterly earnings exceeded consensus estimates by $0.03 per share, and its third-quarter revenue guidance surpassed market expectations, prompting Northland to raise its price target to $20 while maintaining a Market Perform rating. Goldman Sachs reiterated a Neutral rating with a $27 price target after SolarEdge exceeded top and bottom-line expectations for the second quarter of 2025, driven by strong storage volumes and improved gross margins. Oppenheimer maintained its Perform rating, noting SolarEdge’s meaningful progress in recovery and inventory normalization, with guidance pointing toward gross margin recovery in the third quarter of 2025. Barclays (LON:BARC) also reiterated its Equalweight rating with a $29 price target, emphasizing the company’s strong position to gain market share in the U.S. commercial and industrial solar sector due to domestic content requirements and foreign entity restrictions. These developments indicate SolarEdge’s ongoing efforts to enhance its financial performance and market presence.

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