SolarEdge (SEDG) Tumbles 11% on Analyst Downgrades and Valuation Concerns

by MarketNewsData

SolarEdge Technologies (SEDG) plunged 11.13% today to $24.32 following a wave of analyst downgrades, as sentiment shifted after a strong run-up in recent months.

🔻 Why the Stock Is Down

  • The sharp drop comes after the stock more than doubled from April 24 low of $11.72, attracting profit-taking and a reassessment of valuation.
  • Despite recent signs of operational improvement, analysts signaled concerns about overstretched valuation, muted demand recovery, and longer-term challenges in the solar industry.

📉 Key Downgrades

  • J.P. Morgan:
    • Downgraded from Overweight to Neutral
    • Raised price target from $18 to $23
    • Cited the 109% rally since early May as a reason to lock in gains
    • Still acknowledged stronger FY 2026 earnings potential and improved operational efficiency
    • Move reflects a more balanced risk/reward outlook rather than bearish fundamentals
  • BNP Paribas Exane:
    • Downgraded from Neutral to Underperform
    • Lowered price target to $17
    • Expressed deeper skepticism about future profitability and recovery trajectory
    • Indicates more cautious view on macro and policy-related pressures affecting the sector

🧠 Analyst Sentiment Shift

  • The broader analyst consensus has moved toward Hold/Reduce, with fewer bullish calls than before.
  • Many see recent gains as overdone, especially without a clear rebound in demand or margin strength.

📌 Takeaway

Today’s drop reflects a re-rating of expectations. While SEDG has improved operationally, analysts are stepping back due to valuation stretch and uncertainty about sustained recovery. With the average price target now near or below current levels, investor caution is likely to persist in the near term.

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