SolarEdge Is A 'Show-Me Story' After Disappointing Q3: Analyst

SolarEdge Technologies, Inc. SEDG reported worse-than-expected third-quarter results on Wednesday and analysts are weighing in on what is next for the company. 

Truist on SEDG: Truist analyst Jordan Levy highlighted prior commentary from Enphase Energy, Inc. ENPH on weakness in the European market as forewarning for SolarEdge's disappointing results and guidance.

SolarEdge expects revenue of between $180 million and $200 million for the fourth quarter, below the consensus of $308.66 million. 

Levy said market weakness is cyclical and sees SolarEdge as a "show-me story" over the coming quarters. 

Truist reiterated its Hold rating on SolarEdge and lowered its price target from $20 to $15. 

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BMO on SEDG: BMO Capital Markets analyst Ameet Thakkar pointed to Solar Edge's "disappointing update" and "meaningfully" lowered the price target on the stock from $21 to $12 as the European market "has gone from bad to worse." 

The BMO analyst maintained a Market Perform rating and said SolarEdge should see growth alongside solar demand. 

However, Thakkar said the company's management leaves him cautious and he would like to see "more urgency" in the rate of change to the company's cost structure and operational expenditures. 

"At this point, given the already over 80% ytd decline in company share price, high short interest, and SEDG belatedly taking more decisive actions to clear its product channel in Europe we await to see if any progress emerges," the BMO analyst wrote.

SEDG Price Action: According to data from Benzinga Pro, SolarEdge Technologies shares are down 9.74% at $13.43 at the time of publication Friday. 

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