SolarEdge price target lowered to $31 from $71 at Citi

Citi analyst Vikram Bagri lowered the firm’s price target on SolarEdge to $31 from $71 and keeps a Neutral rating on the shares after meeting with management. It appears SolarEdge has reached a “floor valuation” with the stock trading below its book value, the analyst tells investors in a research note. The firm says management indicated that all the inventory on the balance sheet is current generation, committed to $500M of inventory reduction this year, highlighted rationale for convert issuance, and reiterated its confidence in Q2 sell-through to be likely above $500M. Citi sees potential for the stock to be in $40-$4 per share range “even if the stated objectives are partially achieved.”