Mizuho Reiterates Buy Rating on SolarEdge Technologies (SEDG)

Mizuho analyst Maheep Mandloi reiterated a Buy rating and $106.00 price target on SolarEdge Technologies (NASDAQ: SEDG) after dinner with Head of IR, JB Lowe.

The analyst commented, "We hosted a dinner with SEDG Head of IR, JB Lowe. Topics included demand growth in US/Europe, competition from Tesla and Chinese inverter manufacturers, technology roadmap, and cash uses. We reiterate our Buy rating as destocking, revenue growth and margin recovery appear on track for the year.

Europe destocking on track: European oversupply stood at 1.5 qtrs of excess inventory in the channel, or ~$750m exiting Q4. SEDG expects distributors to clear excess inventory linearly over the year per Q4 call remarks, returning to normal inventory levels exiting 2024. Destock is hampered by uneven inventory levels by SKU in the channel, and more inverter inventory than optimizers. SEDG is still bullish on European growth vs the US, with expectations of growth mid-high single digits y/y vs the US, down -19% y/y per Ohm Analytics."

For an analyst ratings summary and ratings history on SolarEdge Technologies click here. For more ratings news on SolarEdge Technologies click here.

Shares of SolarEdge Technologies closed at $63.43 yesterday.

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