Key Takeaways
- Jefferies shifted SolarEdge from Underperform to Hold, increasing the price target from $30 to $49
- European TTF gas prices have jumped approximately 94% since recent geopolitical tensions escalated, creating potential for solar growth
- During the previous energy crisis, SolarEdge’s European revenue expanded from $630M in 2020 to $1.9B by 2023
- The firm boosted its 2027 and 2028 revenue projections by 17% and 19%, respectively
- SEDG shares have climbed roughly 60% year-to-date, trading close to the 52-week peak of $48.60
SolarEdge (SEDG) shares advanced approximately 4% during Friday’s premarket session following an analyst upgrade and increased price outlook from Jefferies.
SolarEdge Technologies, Inc., SEDG
Jefferies elevated SEDG from Underperform to Hold status while boosting the price objective from $30 to $49 — representing approximately 7.3% potential upside from Thursday’s closing price.
The firm’s thesis centers on European energy market dynamics. Gas prices in Europe, measured by the TTF benchmark, have rocketed roughly 94% higher since the recent Middle East conflict intensified. Such dramatic price increases typically motivate homeowners and companies to explore solar and energy storage solutions as hedges against volatile electricity costs.
This phenomenon isn’t unprecedented. When Russia’s energy supply disruptions triggered European power price spikes in 2022, solar installations accelerated. SolarEdge‘s European revenue soared from $630 million in 2020 to reach $1.9 billion by 2023.
Jefferies anticipates a more moderate response this time around. Europe’s renewable energy infrastructure has matured considerably, and electricity prices have remained comparatively steady despite surging gas costs. Any demand recovery is likely to be more gradual.
Nevertheless, the investment firm views SolarEdge as better positioned currently. The inventory challenges that previously pressured financial performance have subsided, and SEDG has expanded its presence in commercial and industrial segments while maintaining residential market share.
Updated Revenue Projections
Jefferies increased its revenue expectations for 2027 by 17% and for 2028 by 19%. The 2026 forecast remained essentially flat, as the firm noted ongoing customer hesitation amid macroeconomic uncertainties.
Despite the positive revision, Jefferies declined to issue a Buy rating. Valuation concerns remain the limiting factor. SEDG has surged approximately 60% in 2026 and currently trades around 18x projected 2027 EV/EBITDA — marginally above peer group averages. Jefferies believes the market has already incorporated expectations of improving demand and competitive positioning.
The broader analyst landscape remains reserved. Among 25 analysts tracking SEDG, just one maintains a Buy rating, while 18 recommend Hold and six suggest Sell. The MarketBeat consensus registers as “Reduce” with an average price target of $29.09 — significantly below current trading levels.
Latest Quarterly Performance
SolarEdge’s latest quarterly results exceeded Wall Street expectations. The company reported EPS of -$0.14, surpassing the consensus forecast of -$0.19. Revenue reached $333.8 million against expectations of $330.3 million, representing 70.9% year-over-year growth.
Net margin remains in negative territory at -34.23%, and analysts forecast full-year EPS of -$4.54 for the current fiscal year.
Institutional investors control approximately 95% of outstanding shares. Multiple major stakeholders have expanded their positions in recent quarters, notably UBS Group, which increased its holdings by 234.8% during Q3.
SEDG opened Friday trading at $45.66, marginally below its 52-week high of $48.60.
