SolarEdge Technologies, Inc.: Mizuho cuts target price to $38 from $71

Mizuho Securities recently adjusted its price target for SolarEdge Technologies, Inc. (NASDAQ:SEDG), reducing it to $32 from $33, while maintaining a Neutral rating on the stock. The stock currently trades at $37.90, a 115% increase over the past year. The firm cited concerns over reduced European market contribution and higher operating expenses as key factors behind the adjustment, partially offset by improved gross margins.

SolarEdge’s recent financial performance has shown signs of stabilization. The company exceeded fourth-quarter revenue expectations and provided first-quarter guidance in line with analyst forecasts. Management has outlined a strategic shift for 2026, moving from a defensive posture in 2025—marked by the divestiture of unprofitable units and product simplification—to a more aggressive growth-oriented approach. The company also expects more favorable year-over-year comparisons in 2026, as the first half of 2025 was impacted by high channel inventory levels.

Despite these improvements, SolarEdge continues to face profitability challenges. Its gross profit margin stands at 16.6%, significantly below historical levels and industry peers. Analysts remain divided on the company’s outlook, with BMO Capital raising its price target to $26 while maintaining an Underperform rating, and TD Cowen increasing its target to $43 with a Buy rating. These diverging views highlight the uncertainty surrounding SolarEdge’s ability to sustain its recent momentum and achieve long-term profitability.