William Blair analyst Jed Dorsheimer has maintained their neutral stance on SEDG stock, giving a Hold rating on February 23.
Jed Dorsheimer has given his Hold rating due to a combination of factors that reflect both the potential and challenges facing SolarEdge Technologies. The company has shown positive free cash flow, which alleviates some concerns about liquidity and reduces the risk of needing additional capital raises. This improvement in cash flow is supported by the ramp-up of U.S. manufacturing, which allows SolarEdge to benefit from domestic content tax credits and advanced manufacturing production tax credits.
Despite these positive developments, there are still challenges that justify a Hold rating. The European market continues to face a decline, and although inventory clearing is expected, the overall market conditions remain uncertain. Additionally, while new product launches, such as the silicon carbide inverter, are promising, the competitive landscape with companies like Tesla and Enphase remains intense. Given these mixed factors, the current valuation of SolarEdge at 1x the 2025 EV/sales estimates is seen as appropriately balancing the risks and rewards, leading to the decision to maintain a Market Perform rating.
According to TipRanks, Dorsheimer is a 5-star analyst with an average return of 29.3% and a 51.18% success rate. Dorsheimer covers the Technology sector, focusing on stocks such as Axcelis Technologies, First Solar, and SolarEdge Technologies.
In another report released on February 23, Truist Financial also maintained a Hold rating on the stock with a $18.00 price target.