Key Highlights
- Jefferies shifted SolarEdge from Underperform to Hold while increasing the target price from $30 to $49
- European TTF gas benchmarks have surged approximately 94% following recent geopolitical tensions
- During the 2022 energy crisis, SolarEdge’s European sales expanded from $630M in 2020 to $1.9B by 2023
- The firm elevated its 2027 and 2028 revenue projections by 17% and 19% respectively
- SEDG shares have rallied approximately 60% in 2026 and are trading close to the 52-week peak of $48.60
SolarEdge (SEDG) shares advanced approximately 4% during Friday’s premarket session following an upgrade and increased price target from Jefferies analysts.
SolarEdge Technologies, Inc., SEDG
Jefferies moved its rating on SEDG from Underperform to Hold while boosting the target price from $30 to $49—representing approximately 7.3% potential upside from Thursday’s closing price.
The rationale behind Jefferies’ revised stance centers on European energy market dynamics. The TTF natural gas benchmark has skyrocketed roughly 94% since the outbreak of the recent Middle Eastern conflict. Such dramatic price increases historically drive consumers and enterprises toward solar energy solutions and battery storage systems to hedge against volatile energy expenses.
This scenario has precedent. During 2022, when Russian natural gas disruptions triggered an energy crisis across Europe, solar installations accelerated significantly. SolarEdge‘s revenue from European markets expanded dramatically from $630 million in 2020 to reach $1.9 billion by 2023.
Jefferies cautions against expecting an identical trajectory this time around. Europe’s renewable energy infrastructure has matured considerably since then, with substantially higher penetration rates. Additionally, electricity prices have remained comparatively stable despite the gas price increases. Consequently, any demand recovery will likely prove more gradual.
Nevertheless, the investment bank views SolarEdge as fundamentally stronger than during previous downturns. The inventory glut that previously hampered financial performance has largely resolved, and SEDG has successfully expanded its presence in commercial and industrial segments while maintaining residential market share.
Updated Financial Projections
Jefferies boosted its revenue expectations for 2027 by 17% and 2028 by 19%. The 2026 forecast remained essentially flat, with analysts noting that customers remain hesitant amid prevailing macroeconomic uncertainty.
Despite the upgraded rating, Jefferies declined to issue a Buy recommendation. Valuation concerns remain the primary obstacle. SEDG has surged roughly 60% during 2026 and currently trades around 18x projected 2027 EV/EBITDA—marginally above comparable companies. Jefferies suggests the market has already incorporated expectations for demand improvement and competitive gains.
The broader analyst consensus remains reserved. Among 25 analysts tracking SEDG, just one maintains a Buy rating, while 18 recommend Hold and six advise Sell. The MarketBeat consensus stands at “Reduce” with a mean price target of $29.09—significantly below current trading levels.
Latest Quarterly Performance
SolarEdge’s previous quarterly results exceeded analyst projections. The company delivered EPS of -$0.14, surpassing the consensus estimate of -$0.19. Revenue reached $333.8 million compared to forecasted $330.3 million, representing 70.9% year-over-year growth.
Net margin continues to be negative at -34.23%, while analysts anticipate full-year EPS of -$4.54 for the current fiscal period.
Institutional investors control approximately 95% of shares outstanding. Multiple major shareholders have expanded their positions recently, notably UBS Group, which increased its holdings by 234.8% during Q3.
SEDG began Friday trading at $45.66, slightly beneath its 52-week high of $48.60.
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