TD Cowen analyst Jeff Osborne maintained a Hold rating on SolarEdge Technologies (SEDG – Research Report) today and set a price target of $11.00.
Jeff Osborne has given his Hold rating due to a combination of factors related to SolarEdge Technologies’ current financial and market position. As the company approaches its fourth quarter results for 2024, Osborne is focusing on liquidity amid ongoing macroeconomic challenges in both the U.S. and European markets. The company’s restructuring efforts, aimed at aligning operations with reduced demand, are crucial in assessing their ability to achieve positive cash flow by the first half of 2025, especially with significant convertible notes maturing later in the year.
Despite these efforts, Osborne remains cautious about the company’s outlook due to continued demand deterioration in Europe and uncertain guidance for the first quarter of 2025, excluding any benefits from safe harbor revenue. The company’s strategic moves, including tax credit sales and inventory monetization, are being closely watched as they attempt to bolster their cash position. Additionally, there are concerns about potential additional capital requirements needed to support new product launches and manage the anticipated demand rebound, which further contributes to the Hold rating.
According to TipRanks, Osborne is a 3-star analyst with an average return of 2.7% and a 41.09% success rate. Osborne covers the Technology sector, focusing on stocks such as Cerence, NEXTracker, Inc. Class A, and Enphase Energy.
In another report released on February 3, Mizuho Securities also maintained a Hold rating on the stock with a $12.00 price target.