Key Takeaways
- Jefferies elevated SolarEdge from Underperform to Hold, boosting the price target from $30 to $49
- European TTF gas prices have climbed approximately 94% following recent geopolitical tensions
- SolarEdge’s European revenue expanded from $630M in 2020 to $1.9B in 2023 amid prior energy turmoil
- The brokerage increased its 2027 and 2028 revenue projections by 17% and 19%
- SEDG shares have surged roughly 60% year-to-date, trading close to the 52-week peak of $48.60
SolarEdge (SEDG) advanced approximately 4% during Friday’s premarket session following an upgrade from Jefferies paired with an elevated price target.
SolarEdge Technologies, Inc., SEDG
The rating shift takes SEDG from Underperform to Hold. Jefferies elevated its price objective from $30 to $49 — representing roughly 7.3% potential upside from Thursday’s closing price.
Jefferies’ thesis centers on energy market volatility. European natural gas prices, measured by the TTF benchmark, have jumped approximately 94% since recent Middle East tensions escalated. Such dramatic price increases typically drive households and commercial entities toward solar and energy storage solutions as methods to secure more predictable energy expenses.
This dynamic has historical precedent. When disruptions to Russian gas supply pushed European energy costs skyward in 2022, solar installations accelerated. SolarEdge‘s European revenue climbed from $630 million in 2020 to $1.9 billion by 2023.
Jefferies cautions against expecting a complete replication of that growth trajectory. Renewable energy adoption across Europe has already reached higher levels, and electricity prices have maintained relative stability despite gas cost increases. Any demand recovery is anticipated to be more gradual.
The brokerage does view SolarEdge as better positioned currently. Inventory corrections that pressured previous results have moderated, and SEDG has expanded its presence in commercial and industrial segments while maintaining residential market share.
Updated Revenue Projections
Jefferies enhanced its revenue expectations for 2027 by 17% and for 2028 by 19%. The 2026 projection remained essentially flat, with the firm pointing to customer hesitation amid ongoing macroeconomic uncertainty.
Jefferies held back from issuing a Buy rating. Valuation concerns remain central. SEDG has rallied approximately 60% during 2026 and currently trades around 18x projected 2027 EV/EBITDA — marginally above peer group averages. Jefferies indicated the market has likely incorporated expectations of heightened demand and market share expansion.
The wider analyst community maintains a reserved stance. Among 25 analysts tracking SEDG, one assigns a Buy rating, 18 recommend Hold, and six suggest Sell. The MarketBeat consensus stands at “Reduce” with a mean price target of $29.09 — significantly below current trading levels.
Latest Quarterly Performance
SolarEdge’s latest quarterly results exceeded projections. The company reported EPS of -$0.14, surpassing the consensus expectation of -$0.19. Revenue reached $333.8 million compared to anticipated $330.3 million, representing 70.9% year-over-year growth.
Net margin remains in negative territory at -34.23%, and analysts forecast full-year EPS of -$4.54 for the current fiscal year.
Institutional investors hold approximately 95% of outstanding shares. Multiple large stakeholders expanded their positions during recent quarters, notably UBS Group, which increased its holdings by 234.8% in Q3.
SEDG opened Friday trading at $45.66, marginally below its 52-week high of $48.60.
