Update shared on26 Sep 2025
Fair value Increased 5.78%Analysts raised SolarEdge's price target as the company outperformed peers with market share gains, benefited from favorable U.S. policy shifts and removal of tax headwinds, yet lingering concerns remain over future regulatory risk and residential demand, resulting in a new consensus price target of $23.42.
Analyst Commentary
- Bullish analysts increased price targets due to SolarEdge's relative strength versus peers, market share gains in the U.S. and Europe, and normalization of the European sales channel despite overall market demand declines.
- Several revisions reflected the impact of U.S. policy changes (notably the “One Big Beautiful Bill”), which disadvantages direct ownership models but benefits leasing, favoring SolarEdge's diversified and third-party ownership (TPO) exposure.
- Removal of the proposed one-time excise tax on foreign content was viewed positively, extending safe harbor provisions and supporting sector-wide stability and investment.
- Bearish analysts remain cautious on SolarEdge’s outlook given the accelerated sunset of residential solar tax credits, the introduction of new material sourcing penalties, and continued regulatory uncertainties likely to pressure residential demand from 2026 onward.
- Some upside adjustments appear technically driven by recent stock short covering and model roll-forwards to future periods, with several analysts warning of limited further upside and ongoing risks from broader market and policy headwinds.
What's in the News
- The EPA, under the Trump administration, plans to revoke $7B in grants from the “Solar for All” rooftop solar program, targeting all 60 grant recipients across 49 states (The Washington Post).
- SolarEdge announced a milestone in its U.S. manufacturing strategy, successfully initiating international shipments of American-made residential solar products, with more markets, including C&I products, set for export in Q4 2025; U.S. factories aim to support tax credit qualification for domestic content (Key Developments).
- SolarEdge provided Q3 2025 revenue guidance of $315 million to $355 million (Key Developments).
- SolarEdge formed a strategic partnership with Schaeffler for the deployment of EV charging infrastructure and software, targeting installation of 2,300 charging points at Schaeffler sites throughout Europe, leveraging SolarEdge’s Wevo technology and energy optimization platform (Key Developments).
- SolarEdge and Solar Landscape agreed to supply U.S.-manufactured solar technology for over 500 commercial rooftop projects across numerous states, with a focus on accelerating distributed generation on large-scale rooftops; the collaboration supports installation capacity projected to power 80,000 households, and builds on SolarEdge’s strong pipeline with partners controlling over 2 billion square feet of U.S. commercial real estate (Key Developments).
Valuation Changes
Summary of Valuation Changes for SolarEdge Technologies
- The Consensus Analyst Price Target has risen from $22.14 to $23.42.
- The Net Profit Margin for SolarEdge Technologies has significantly risen from 1.17% to 2.68%.
- The Future P/E for SolarEdge Technologies has significantly fallen from 114.99x to 52.15x.
Disclaimer
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