UBS Raises SolarEdge Price Target to $40 Amid Analyst Ratings Shift
SolarEdge Technologies (NASDAQ: SEDG) saw its price target increased from $30.00 to $40.00 by UBS Group in a research report released on November 5, 2023. The firm maintains a neutral rating on the semiconductor company’s stock, reflecting a cautious outlook amidst a broader reassessment by several investment analysts.
Several other firms have also updated their ratings on SolarEdge Technologies. Roth Capital raised its price target for the company’s shares from $15.00 to $25.00, while maintaining a neutral rating. In a similar move, Susquehanna adjusted its price objective from $25.00 to $40.00, also assigning a neutral rating. Wells Fargo & Company increased its target price from $24.00 to $42.00 with an “equal weight” rating, and Royal Bank Of Canada raised its price target from $25.00 to $34.00, giving it a “sector perform” rating. Additionally, Morgan Stanley increased its price objective from $25.00 to $27.00, but issued an “underweight” rating.
According to MarketBeat.com, 18 investment analysts have given SolarEdge a hold rating, while ten have assigned a sell rating. The average rating for the stock stands at “Reduce,” with an average price target of $24.62.
Recent Earnings Performance
SolarEdge Technologies reported its quarterly earnings on November 5, revealing a loss of ($0.31) earnings per share. This result exceeded analysts’ expectations, which had estimated a loss of ($0.43) per share. The company generated revenue of $339.70 million, surpassing projections of $331.13 million and reflecting a significant increase of 30.4% compared to the same quarter the previous year.
For context, the company’s return on equity stood at (191.53%), along with a negative net margin of (177.64%). SolarEdge has provided guidance for the fourth quarter of 2025, anticipating further developments in its financial performance. Analysts predict a fiscal year-end earnings per share of (4.54).
Institutional Investment Trends
Institutional investors have been active in adjusting their positions in SolarEdge Technologies. U.S. Capital Wealth Advisors LLC entered a new position in the company during the second quarter, valued at $204,000. Similarly, Bayforest Capital Ltd increased its stake in SolarEdge by 49.8%, now owning 85,461 shares valued at approximately $1.74 million after purchasing an additional 28,425 shares.
Phoenix Financial Ltd. also acquired a new stake valued at $216,000. Notably, Migdal Insurance & Financial Holdings Ltd. saw a dramatic increase, raising its holdings by 10,038.2% during the first quarter, now owning 1,109,225 shares valued at about $17.95 million. Furthermore, Nuveen LLC made a new investment in SolarEdge during the first quarter, valued at approximately $1.09 million. Currently, 95.10% of the company’s stock is owned by institutional investors.
SolarEdge Technologies specializes in designing, developing, manufacturing, and selling direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations across various regions, including the United States, Germany, the Netherlands, and Italy. The company’s operations are divided into two segments: Solar and Energy Storage.
As the market continues to evolve, analysts remain focused on SolarEdge’s performance and strategic direction, particularly in light of recent adjustments in price targets and institutional investment activity.
