Biju Perincheril of Susquehanna adjusts the price target for SolarEdge to $56, indicating a potential increase of about 13.2%, with a downgrade of its rating to neutral from positive.
SolarEdge reports a significant first-quarter loss in 2024, with an adjusted loss per share of $1.90 and a GAAP loss of $2.75 per share.
Revenue plummeted by 78% year over year to $204.4 million, reflecting ongoing struggles within the solar industry.
On Monday, May 13, 2024, Biju Perincheril of Susquehanna adjusted the price target for SolarEdge Technologies (NASDAQ:SEDG) to $56, suggesting a potential increase of about 13.2% from its current price of $49.47. This new target comes with a downgrade in rating to Neutral from Positive. SolarEdge Technologies, a key player in the solar energy sector, specializes in the development of inverter solutions for solar photovoltaic (PV) systems. The company’s recent performance and market position are crucial for investors, especially in the context of the broader solar industry’s dynamics.
The solar sector, where SolarEdge operates alongside competitors like Enphase Energy (ENPH), First Solar (FSLR), and Canadian Solar (CSIQ), is experiencing growth, particularly in the residential segment. However, SolarEdge’s recent financial outcomes have raised concerns. The company reported a significant first-quarter loss in 2024, with an adjusted loss per share of $1.90, surpassing the Zacks Consensus Estimate of a $1.58 loss. This marks a considerable downturn from the previous year’s earnings of $2.90 per share. On a GAAP basis, the loss was even steeper at $2.75 per share, compared to GAAP earnings of $2.35 per share in the same period last year.
Revenue figures further underscore the challenges SolarEdge is facing. The company’s revenues plummeted by 78% year-over-year to $204.4 million, albeit slightly beating the Zacks Consensus Estimate by 4.9%. This decline is primarily due to a significant drop in revenues from its solar segment, which fell by 79% to $190.1 million from $908.5 million in the prior-year period. Such financial results reflect the ongoing struggles within the solar industry and have led to a reassessment of SolarEdge’s outlook by analysts and investors alike.
The stock performance of SolarEdge also mirrors these financial challenges. The company’s shares experienced a decrease, closing at $49.47, which is a decline of approximately 6.08%. This trading session saw the stock fluctuating between a low of $49.12 and a high of $53.67. Over the past year, SEDG’s shares have seen a high of $313.55 and a low of $49.12, with a market capitalization of approximately $2.83 billion. This volatility in stock price, coupled with the recent downgrade by Susquehanna, suggests a cautious outlook for SolarEdge within the competitive landscape of the solar energy sector.
