SolarEdge (NASDAQ:SEDG) Slips Further on Wells Fargo Downgrade
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SolarEdge (NASDAQ:SEDG) Slips Further on Wells Fargo Downgrade

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SolarEdge shares slipped further on Monday as Wells Fargo downgraded the stock on weakening sales and doubtful guidance.

Shares of SolarEdge Technologies (NASDAQ:SEDG), known for its inverters, batteries, and electric vehicle chargers, fell over 5% in Monday’s trading session following a Wells Fargo downgrade. 

Indeed, Wells Fargo analyst Praneeth Satish downgraded the stock from Overweight to Equal Weight and slashed his price target from $190 to $82, citing significant uncertainties.

Furthermore, Praneeth said he is unconvinced about SolarEdge’s quarterly demand guidance of $600-$700 million based on Q3 averages, given that demand in September was lower than in Q3. The analyst added that if demand remains the same relative to September, then the guidance would be unachievable. 

Also, the analyst raised concerns about the unexpected monthly sales drop in Europe during September, which is usually a growth period for the company. The SolarEdge downgrade at Wells Fargo follows similar downgrades at other investment firms due to weaker-than-expected Q3 results.

Is SolarEdge a Good Stock to Buy?

With three Buys, 10 Holds, and one Sell, SolarEdge stock has a Hold consensus rating. Further, the average SEDG price target of $92.82 per share implies 31.45% upside potential from current levels.

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