Update shared on 28 Nov 2025
Fair value Increased 9.89%Analysts have raised their price target for SolarEdge Technologies, increasing it from $30.23 to $33.22. This change is attributed to improved margin outlooks as well as anticipated international and commercial growth opportunities.
Analyst Commentary
Recent analyst research on SolarEdge Technologies reflects a range of perspectives following updated price targets and earnings results. Feedback centers on the company’s margin outlook, growth channels, and areas of potential risk.
Bullish Takeaways- Bullish analysts are raising price targets, highlighting stronger than expected margins in recent quarters, which they believe could persist through 2026.
- Opportunities in commercial and international markets are cited as potential catalysts for future growth, even as certain domestic segments soften.
- Partnership announcements in key sectors, such as data center infrastructure, are being viewed as positive steps to diversify revenue streams and enhance long-term positioning.
- Estimates suggest SolarEdge could outperform consensus if it recaptures market share from competitors, especially in light of resilient execution in Q3.
- Bearish analysts remain cautious about a weaker outlook for U.S. residential solar, particularly with regulatory changes expected to dampen demand in 2026.
- Near-term revenue guidance has been described as mixed, raising questions about sales stability despite margin improvements.
- Some maintain more conservative ratings as they await sustained evidence of recovery across all end markets, signaling valuation concerns amid unresolved headwinds.
What's in the News
- The White House is considering canceling an additional $12 billion in clean energy funding, which could impact publicly traded companies including SolarEdge Technologies (Semafor).
- SolarEdge announced its first commercial battery installations in Germany, receiving over 150 orders for its new CSS-OD commercial storage system within weeks of launch.
- The company provided earnings guidance for the fourth quarter ending December 31, 2025, expecting revenues between $310 million and $340 million.
- SolarEdge and Infineon Technologies are collaborating to advance a solid-state transformer platform for next-generation AI and hyperscale data centers.
- SolarEdge surpassed 500 MWh of residential battery storage enrolled in Virtual Power Plant programs across 16 U.S. states and Puerto Rico.
Valuation Changes
- Consensus Analyst Price Target has increased from $30.23 to $33.22, reflecting a higher fair value outlook for SolarEdge Technologies.
- Discount Rate has risen slightly, moving from 14.57% to 14.61%. This indicates a marginal increase in assessed risk or expected return.
- Revenue Growth expectations have edged up, with projections rising from 13.73% to 14.18%.
- Net Profit Margin has improved notably, increasing from 4.99% to 7.09%. This signifies stronger anticipated profitability.
- Future P/E ratio has decreased significantly from 37.95x to 29.47x, suggesting a valuation that is now more closely aligned with projected earnings growth.
Disclaimer
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