What Happened?
Shares of solar power systems company SolarEdge (NASDAQ: SEDG) jumped 2.4% in the afternoon session after an analyst at UBS raised the firm's price target on the stock to $40 from $30. The adjustment represented a 33.33% increase in the price target. Despite the more optimistic valuation, the investment bank maintained its 'Neutral' rating on the shares. This suggested that while the firm saw more potential value in the stock, it was not signaling a strong recommendation to buy.
After the initial pop the shares cooled down to $36.49, up 0.2% from previous close.
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What Is The Market Telling Us
SolarEdge’s shares are extremely volatile and have had 95 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 13.1% on the news that peer Canadian Solar reported a significant drop in its third-quarter module shipments, raising concerns about a broader industry slowdown. Canadian Solar, a major player in the sector, announced that its total module shipments recognized as revenues plunged by 39% compared to the previous year. This steep decline suggested weakening demand across the solar market, which negatively impacted investor sentiment for related companies like SolarEdge. The news compounded existing worries about increased competition within the industry. Furthermore, it aligned with projections of a significant decrease in demand for residential solar systems, adding to the pressure on the company's outlook.
SolarEdge is up 147% since the beginning of the year, but at $36.49 per share, it is still trading 19.6% below its 52-week high of $45.38 from November 2025. Investors who bought $1,000 worth of SolarEdge’s shares 5 years ago would now be looking at an investment worth $159.86.
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