SolarEdge Technologies has seen its price target increased from $30.00 to $40.00 by UBS Group in a research report released on October 13, 2023. This adjustment reflects the investment firm’s current neutral stance on the semiconductor company, which specializes in solar energy solutions. The report follows a series of similar reassessments from other analysts, indicating a cautious optimism surrounding SolarEdge’s performance.
In a report issued on August 5, Roth Capital raised its price target from $15.00 to $25.00, maintaining a neutral rating. Meanwhile, Susquehanna also increased its target, setting it at $40.00, while Wells Fargo & Company raised their target to $42.00 with an equal weight rating. Both Royal Bank of Canada and Morgan Stanley adjusted their estimates, with the former increasing its target to $34.00 and the latter to $27.00.
The adjustments reflect a broader trend among analysts, with eighteen investment analysts rating the stock as a hold and ten assigning a sell rating. According to data from MarketBeat.com, the stock currently holds an average rating of “Reduce” with an average price target of $24.62.
Recent Earnings Performance
SolarEdge Technologies reported its quarterly earnings on November 5, 2023, revealing a loss of $0.31 per share. This figure was better than the consensus estimate of $0.43, exceeding expectations by $0.12. The company also posted a revenue of $339.70 million, surpassing analysts’ expectations of $331.13 million. This represents a significant growth of 30.4% compared to the same quarter last year.
Despite these promising figures, SolarEdge continues to face challenges, reflected in its negative return on equity of 191.53% and a negative net margin of 177.64%. Looking ahead, analysts project that the company will report an earnings per share of -4.54 for the current fiscal year.
Institutional Investment Activity
Institutional investors have shown increased interest in SolarEdge Technologies, with various hedge funds adjusting their stakes. U.S. Capital Wealth Advisors LLC acquired a new position valued at $204,000 during the second quarter, while Bayforest Capital Ltd increased its holdings by 49.8%, now owning 85,461 shares valued at approximately $1.74 million.
Additionally, Phoenix Financial Ltd. initiated a new stake valued at $216,000, and Migdal Insurance & Financial Holdings Ltd. significantly raised its holdings by over 10,000%, now owning 1,109,225 shares valued at $17.95 million. Meanwhile, Nuveen LLC also acquired a new position worth about $1.09 million. Currently, institutional investors own 95.10% of SolarEdge’s stock.
As SolarEdge Technologies continues to navigate the complex landscape of the renewable energy market, the recent price target increases and positive earnings report suggest a cautiously optimistic outlook among analysts and investors. This trend may indicate growing confidence in the company’s ability to adapt and thrive in an increasingly competitive sector.
