Goldman ‘misinterpreting’ investors’ SolarEdge concerns, says GLJ Research

GLJ Research analyst Gordon Johnson notes that Goldman Sachs double upgraded SolarEdge (SEDG) to Buy from Sell with a $19 12-month forward price target which compares to GLJ’s year-end 2025 price target of $3.90 and continued Sell rating. It seems that Goldman believes the key concern weighing on shares rests with the company’s ability to address its $347.5M convertible bond due in September of 2025, but GLJ believes Goldman is “misinterpreting” why investors have “deep-rooted” concerns about SolarEdge in 2025, stating that “the concern we hear from our clients rests with the idea that after SEDG pays off its convert, they will have less than 1-quarter of COGS left on the balance sheet with no way to generate cash.” GLJ suggests shorting SolarEdge on today’s 21.75% “pop,” which the firm calls “an early Christmas gift from ‘Wall Street Santa Clause’.”