SolarEdge price target lowered to $7 from $17 at Barclays

Barclays lowered the firm’s price target on SolarEdge (SEDG) to $7 from $17 and keeps an Underweight rating on the shares. The firm does not believe SolarEdge needs external capital in the next 12 months as it benefits from working capital being a source of cash. However, it does think the company’s cash burn could resume in 2026 if the market doesn’t materially improve and/or the company doesn’t cut costs more drastically. Lower demand and regulatory changes have led to elevated levels of channel inventories, which will continue to slow SolarEdge’s growth and also contribute to lower gross margins relative to peers, the analyst tells investors in a research note.