SolarEdge price target lowered to $25 from $53 at Piper Sandler

Piper Sandler lowered the firm’s price target on SolarEdge to $25 from $53 and keeps a Neutral rating on the shares. The firm reduced estimates to reflect more conservative distributor sell-through assumptions. Regarding SolarEdge’s convert, the timing isn’t surprising given the recent European and U.S. trends, the analyst tells investors in a research note. What surprised Piper was the $150M cash burn after management indicated Q1 cash would be the low point of this year on the May earnings call. The company’s’ Q2 cash burn coupled with its liquidity is “untenable” and its Q3 and cash flow “needs to improve to address liquidity concerns,” the firm contends. It believes SolarEdge should have refinanced the entire $630M convert “to completely assuage market concerns.”