SolarEdge’s Rating Slashed at Barclays

SolarEdge’s Rating Slashed at Barclays Jan. 17, 2024, 12:24 p.m., readers: 27

Barclays analysts adjusted their rating for SolarEdge Technologies (NASDAQ:SEDG), downgrading it from Equalweight to Underweight, and reduced the price target from $74.00 to $50.00. The analysts' comments are based on a comparative analysis with Enphase Energy (ENPH), indicating that SolarEdge is currently trading at a higher valuation than Enphase. After revising their figures, the analysts observe that SolarEdge is trading at a three-turn premium compared to Enphase based on the estimated 2025 earnings per share (EPS), and approximately two turns higher on the 2025 estimated enterprise value to EBITDA (EV/EBITDA) ratio. Considering the anticipated stronger recovery for Enphase, along with its higher gross margins, the analysts argued that the valuation dynamics should be reversed, with Enphase meriting a higher trading premium than SolarEdge.

About NASDAQ: SEDG

S olarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. It operates through five segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines. The company offers inverters, power optimizers, communication devices, and smart energy management solutions used in residential, commercial, and small utility-scale solar installations;

Price: 59.52
Market cap: 3.4 billion USD
Eps: 0.60
P/e ratio: 99.20
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