SolarEdge cut to Underperform, Array to Neutral at BofA after Trump win

BofA downgraded SolarEdge (SEDG) to Underperform from Neutral with a price target of $14, down from $21, and lowered the firm’s rating on Array Technologies (ARRY) to Neutral from Buy with a price target of $7, down from $11, after last night’s election results led to a solar sector-wide selloff as investors assess the potential impact of shifting federal policies. Although Trump’s policies would take time to take shape, his aim to amend the IRA and increase tariffs heightens the risk of significant sector impact, the analyst tells investors. The firm thinks inverter companies Enphase (ENPH) and SolarEdge could be adversely affected in a scenario where it sees risk to the domestic content bonuses and reduced residential ITC credits, diminishing the appeal of rooftop solar, the analyst noted.