SolarEdge Technologies, Inc. SEDG shares are trading lower Wednesday after Barclays downgraded the stock from Equal-Weight to Underweight and lowered its price target from $74 to $50.
The Details:
Barclays identified multiple downside risks for SolarEdge in its note, including a tough road to recovery for the company’s top line, gross margins and maintaining its market share against larger competitors which include Tesla, Inc. TSLA and Enphase Energy, Inc. ENPH. The firm said it prefers Enphase, which it believes is better positioned for the path to recovery.
The analyst note also mentions rising shipping costs as a concern for SolarEdge , especially after the company shut down its Mexico facility and will now have to ship its products from Asia to fulfill demand.
According to data from Benzinga Pro, 10 analysts have a positive rating on SolarEdge, nine have a neutral rating and four analysts have a negative rating on the company. The analyst consensus price target for SolarEdge is $154.45.
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SEDG Price Action: According to Benzinga Pro, SolarEdge Technologies shares are down 6.47% at $69.12 at the time of publication.
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