SolarEdge price target lowered to $46 from $72 at Scotiabank

Scotiabank lowered the firm’s price target on SolarEdge to $46 from $72 and keeps a Sector Perform rating on the shares. While the company reconfirmed its Q2 guidance for topline, it noted a negative $150M free cash figure for the quarter, the analyst tells investors. The primary driver of the weak cash figure was cited to be customer financing and slower receivables, which suggests the residential solar market is still early for a meaningful inflection in end-demand. Overall, the firm views the cash and customer commentary as a net negative for the stock in the near term.