SolarEdge Stock Soars After Bank of America Upgrade

SolarEdge Technologies (SEDG) shares surged successful intraday trading Monday pursuing an upgrade from Bank of America, which based on nan star powerfulness instrumentality shaper will station a profit adjacent twelvemonth and said its banal is undervalued.

BofA Securities raised its standing to "neutral" from "underperform," though it lowered nan value target to $29 from $44. 

The strategists said nan caller driblet SolarEdge's stock value is based connected “an improbable worst-case script of inventory writedowns, a deficiency of betterment successful nan inventory transmission congestion done '25 and an inability to monetize nan equilibrium sheet.”

BofA Expects SolarEdge To Return To Profitability Next Year

BofA noted that nan European star marketplace faces “substantial inventory headwinds,” and that nan institution is seeing weaker end-demand successful nan U.S. However, while nan slope believes nan pullback will proceed passim this year, it expects SolarEdge to return to profitability successful nan first half of 2025. 

BofA explained that it dropped nan value target moreover arsenic shares look appealing connected a valuation ground because “we look for a much tangible way for margin and cash flow betterment earlier we would return a much bullish position connected nan stock.” The strategists added that “the assemblage backdrop remains excessively uncertain to presume afloat basal betterment successful nan adjacent term.” 

Shares of SolarEdge Technologies deed a astir seven-year debased earlier this month, and moreover pinch today’s 9% emergence to $27.32 arsenic of 1:55 p.m. ET, they’ve still mislaid astir 70% of their worth year-to-date.