SolarEdge Technologies (SEDG) shares jumped on Tuesday after Goldman Sachs upgraded the stock from Sell to Buy and raised its price target to $19, up from $10. Goldman believes that concerns over SolarEdge’s $350 million debt may be exaggerated. The company faced pressure earlier this year when one of its customers filed for Chapter 7 bankruptcy, which left an unpaid debt of $11.4 million. However, Goldman appears optimistic about SolarEdge’s ability to stabilize its financial situation.
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SolarEdge recently shut down its Energy Storage division to cut costs, a move that is expected to save $7.5 million in operating expenses by late 2025. Goldman noted that the restructuring could help SolarEdge focus on improving its product sales mix and offer a clearer path toward recovery.
GLJ Research Disagrees with Goldman Sachs
Interestingly, GLJ Research analyst Gordon Johnson disagrees with Goldman Sachs’ optimistic stance on SolarEdge. GLJ maintains a Sell rating and a much lower year-end 2025 price target of $3.90.
While Goldman focuses on SolarEdge’s ability to handle its $347.5 million convertible bond maturing in September 2025, Johnson argues that it is missing the bigger issue: after repaying the bond, SolarEdge might not have enough cash left to cover even three months’ worth of production costs, and it’s unclear how they’ll bring in more money to keep the business running.
Johnson believes investors’ real concerns go beyond the bond, and he remains skeptical about SolarEdge’s financial health heading into 2025. He even suggested shorting the stock after its nearly 22% jump and called the rally an “early Christmas gift” for traders looking for a downside opportunity.
Is SEDG Stock a Buy or Sell?
Overall, analysts have a Moderate Sell consensus rating on SEDG stock based on one Buy, 13 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After an 84% decline in its share price over the past year, the average SEDG price target of $11.78 per share implies 19% downside potential.
