BofA Securities Downgrades SolarEdge (NASDAQ:SEDG) and Slashes Price Target

A BofA Securities analyst has reduced her price target on SolarEdge Technologies (SEDG) and downgraded the company following Donald Trump’s recent election victory. Dimple Gosai lowered her price target from $21 to $14 per share and her rating on SEDG stock from Neutral to Underperform. The solar energy producer is one of many companies in the clean energy space that will likely struggle under a Trump presidency.

What Is Happening with SolarEdge Stock?

Shares of SolarEdge plunged this morning and have not recovered since. SEDG stock finished out the day down 22% and has continued falling in after-hours trading. These declines have pushed it down 15% for the past five days after a week of slight volatility but little negative price action.

With market momentum shifting toward Trump’s upcoming presidency, clean energy stocks like SolarEdge will likely struggle and primarily continue to decline. During his first term, Trump’s administration rolled back many environmental policies, negatively impacting the entire sector. Investors and analysts have plenty of reason to assume a similar outcome during his second term.

Gosai also lowered her price target on fellow solar energy stock First Solar (FSLR) from $269 to $259. However, on this stock, she maintains a Buy rating while rating SolarEdge as a Sell. This may be because First Solar has significantly outperformed SolarEdge throughout the year, rising 34%, while the latter has declined 80%.

Is SolarEdge Stock a Buy, Sell, or Hold?

Overall, Wall Street is sidelined on SolarEdge. Analysts have a Hold consensus rating on SEDG stock based on two Buys, 17 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After declining 80% over the past year, the average SEDG price target of $21.55 per share still implies 47% upside potential.

See more SEDG stock analyst ratings