Update shared on10 Oct 2025
Fair value Increased 7.19%Analysts have raised their average price target for SolarEdge Technologies from $23.42 to $25.10. They cite improved margin outlooks and upside potential tied to possible market share gains, despite ongoing industry challenges.
Analyst Commentary
Recent analyst research reflects a range of viewpoints regarding SolarEdge Technologies, with valuation adjustments highlighting both optimism about potential growth and ongoing caution about industry headwinds.
Bullish Takeaways- Bullish analysts have notably raised price targets, pointing to upside potential if SolarEdge successfully regains market share, particularly from competitors like Tesla.
- Some expect SolarEdge to achieve or exceed upcoming consensus estimates, reflecting increased confidence in the company’s execution and momentum into the next quarter.
- Growth is forecast even in the context of a broader market slowdown, with factors such as channel normalization in Europe and gains in the U.S. and European markets supporting this outlook.
- SolarEdge’s position as a lower-cost provider with significant exposure to third-party owned (TPO) systems may enable it to capture more of the U.S. residential solar market as payback periods and storage options become more important to customers.
- Bearish analysts remain cautious due to potential ongoing headwinds for end-market demand, especially as incentives such as homeowner solar tax credits phase out.
- Concerns persist about the sustainability of recent stock performance, with some noting that gains may be attributed to short covering rather than fundamental improvement.
- Multiple analysts retain neutral or underperform ratings, pointing to risks related to volatile return rates and payback periods, as well as uncertainty regarding long-term demand recovery.
What's in the News
- The Environmental Protection Agency plans to terminate $7B in rooftop solar grant awards under the Solar for All program, impacting all 49 states participating (The Washington Post).
- The White House is considering canceling an additional $12B in funding for clean energy projects. This could potentially escalate recent policy shifts affecting public clean energy companies including SolarEdge (Semafor).
- SolarEdge Technologies announced its first international shipments of American-made residential solar technology, with exports to Australia now underway. Additional markets are expected later in 2025.
- SolarEdge entered a strategic partnership with Schaeffler to deploy 2,300 EV charging points across Europe. This initiative will leverage SolarEdge’s advanced software and hardware solutions.
Valuation Changes
- Consensus Analyst Price Target has risen from $23.42 to $25.10, indicating a modest increase in expected valuation.
- Discount Rate has increased slightly from 14.86% to 15.03%, which points to a marginally higher perceived risk or required return.
- Revenue Growth forecast has declined from 19.45% to 17.57%, reflecting more conservative sales expectations.
- Net Profit Margin is up marginally, moving from 2.68% to 2.87%, which suggests incremental profitability improvements.
- Future P/E ratio has climbed from 52.15x to 54.84x, which implies higher expectations for forward earnings relative to price.
Disclaimer
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