SolarEdge price target lowered to $3.90 at GLJ Research

GLJ Research analyst Gordon Johnson lowered the firm’s price target on shares of SolarEdge to $3.90, representing 80.9% downside from yesterday’s closing price, and keeps a Sell rating on the shares. While contending that “many of our Wall Street peers have yet to see a ‘real’ solar down-cycle,” the firm says such cycles are usually defined by inverter supplier “casualties”, defined by a prior “leader” ceasing to exist, calling SolarEdge “a prime candidate” for such a scenario. The firm argues that SolarEdge will be forced – similar to the distributors currently trying to offload excess SolarEdge inventory at steep discounts – to lower its average selling prices to destock its current $1.5B inventory glut, given the global solar industry remains overstocked.