UBS has raised its price target for SolarEdge Technologies from $36 to $42, suggesting a potential upside of nearly 41% from the stock's recent closing price. This upgrade follows the U.S. Federal Communications Commission's ban on new imports of power inverters produced abroad, which is anticipated to impact about 50% of the U.S. inverter market.
Analyst Jon Windham noted that this ban will likely drive manufacturers to SolarEdge's products, particularly its utility-scale inverter model, the 330kW TerraMax, which had previously seen limited adoption. Despite the positive outlook from UBS, the consensus among Wall Street analysts remains cautious, with 20 out of 27 maintaining a hold rating on the stock.
SolarEdge shares have experienced a significant decline of approximately 58% over the past three months, but they rose over 5% in premarket trading following the upgrade