Northland trims SolarEdge price target to $120, says ‘too late to downgrade’

Northland lowered the firm’s price target on SolarEdge to $120 from $125 and keeps an Outperform rating on the shares, stating a belief that the company “sandbagged its guidance.” The company’s estimates for European revenue declines “seem to be conservative” and the company saw a significant increase in warranty reserve that is “unlikely to repeat,” the analyst tells investors. The analyst, who contends that “it is too late to downgrade” argues that SolarEdge is “set up to play earnings momentum” and that “there are few sell-side downgrades left.”