SolarEdge price target lowered to $41 from $83 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on SolarEdge to $41 from $83 and keeps an Equal Weight rating on the shares after the company said its expected free cash flow burn in Q2 would amount to about $150M and announced plans to offer $300M of convertible senior notes. The company expects to use some net proceeds to redeem a portion of its outstanding notes that mature in 2025, which partially de-risks its 2025 debt maturity, but this was earlier than expected and potentially indicative of a slower than expected inventory de-stocking cycle, the analyst tells investors. The firm has a cautious tactical view on the stock until there is a more tangible path for margin and cash flow recovery, the analyst added.