SolarEdge Technologies (SEDG): Reassessing Valuation After Morgan Stanley’s Upgrade and Renewed Analyst Optimism

Morgan Stanley just shifted its view on SolarEdge Technologies (SEDG) to a more neutral stance after a long stretch of skepticism, and other firms are gradually following. For investors, that kind of coordinated sentiment change is worth unpacking.

See our latest analysis for SolarEdge Technologies.

The latest upgrades are landing after a volatile stretch, with SolarEdge’s share price returning about 96 percent year to date but still leaving the three year total shareholder return deeply negative. As a result, recent momentum looks more like a sharp recovery than a full turnaround.

If this shift in sentiment around SolarEdge has your attention, it could be a good moment to see what else is setting up for a rebound across high growth tech and AI stocks.

After a brutal multiyear drawdown, a near doubling in the share price this year and a modest discount to analyst targets leaves SolarEdge looking like either a mispriced turnaround or a stock where future growth is already fully reflected.

Most Popular Narrative: 12.1% Undervalued

With SolarEdge last closing at 29.06 dollars against a narrative fair value near 33 dollars, the current setup frames an intriguing disconnect in expectations.

Analysts are assuming SolarEdge Technologies's revenue will grow by 20.6% annually over the next 3 years. Analysts assume that profit margins will increase from -185.2% today to 0.7% in 3 years time.

Read the complete narrative.

Curious how a loss making business earns a premium style multiple? The story leans on aggressive growth, sharp margin repair, and a bold profit reset. Click in to see which forecasts really carry this valuation.

Result: Fair Value of $33.04 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a more generous US policy backdrop and faster storage adoption could quickly justify higher margins and valuations than today’s cautious assumptions imply.

Find out about the key risks to this SolarEdge Technologies narrative.

Build Your Own SolarEdge Technologies Narrative

If you see the setup differently or want to dig into the numbers yourself, you can build a fully custom view in minutes with Do it your way.

A great starting point for your SolarEdge Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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