Guggenheim downgrades SolarEdge to Sell on Europe, cash challenges

Guggenheim downgraded SolarEdge to Sell from Neutral with a $10 price target The company seems to have “no answer” for the continued aggressiveness of Chinese suppliers in European markets for residential inverters, the analyst tells investors in a research note. The firm believes a “fundamental reassessment” of SolarEdge’s product lineup in Europe is needed. Investors may be underestimating how quickly the attach rate in the market could rise next year as prices continue to decline and the remaining California NEM 2.0 backlog, which has much lower storage attach rates, is worked off, contends Guggenheim. The firm also believes SolarEdge will need to raise capital before September 2025.