SolarEdge selloff last week overdone, says Citi

Citi analyst Vikram Bagri says the selloff in shares of SolarEdge Technologies on margin concerns and market share fears are overdone following last week’s preliminary Q3 results. The largest drivers for margin decline are pricing, lower optimizer/inverter ratio, product mix shift, and air freight, the analyst tells investors in a research note. Investor feedback for the stock selloff focused on scarce details in the pre-release and lack of a conference call, which created confusion around drivers behind the sharp Q3 margin contraction, says Citi. It believes clarity on the Q3 earnings call “should assure investors and act as a catalyst.” Citi keeps a Buy rating on SolarEdge with a $187 price target.