SolarEdge price target lowered to $125 from $147 at Northland

Northland lowered the firm’s price target on SolarEdge to $125 from $147 and keeps an Outperform rating on the shares after the company pre-announced Q3 revenue that was a 20% shortfall at the midpoint of its range citing cancellations and pushouts due to an inventory correction. While the firm had expected to cut estimates for calendar 2024, the “reduction is more significant than anticipated,” the analyst tells investors. While the firm notes it upgraded SolarEdge a week ago and calls this an “ill-timed upgrade,” it adds it “would be kicking the tires of the inverter companies” and SolarEdge is “a significant player in the market.” The firm believes energy and AI are two themes for the next ten years and views the inverter companies’ products as the hubs for home energy management and storage.