Susquehanna downgrades SolarEdge on ‘cloudy’ recovery timing

Susquehanna downgraded SolarEdge to Neutral from Positive with a price target of $56, down from $92, post the Q1 report. The timing of a recovery “remains cloudy,” the analyst tells investors in a research note. The firm says demand has yet to recover in both the U.S. and Europe with channel inventory remaining overstuffed. As a result, it expects under-shipping could last at least through the end of this year. SolarEdge is also undertaking targeted price reduction actions to help reduce inventory, while competitive pressures likely require additional price concession, particularly in the European market, notes Susquehanna.