SolarEdge Technologies, Inc. SEDG shares are trading lower due to a recent downgrade by Barclays from Equal-Weight to Underweight, accompanied by a lowered price target from $74 to $50.
The Downgrade Details
Barclays outlined several downside risks for SolarEdge, including a challenging path to recovery for the company’s top line, gross margins, and market share maintenance in an environment of larger competitors such as Tesla, Inc. TSLA and Enphase Energy, Inc. ENPH. Barclays expressed a preference for Enphase, which it views as better positioned for recovery.
Rising Shipping Costs
Barclays also highlighted rising shipping costs as a concern for SolarEdge, particularly after the company’s closure of its Mexico facility, leading to a necessity to ship products from Asia to meet demand.
Analyst Ratings and Price Target
Data from Benzinga Pro showed that 10 analysts have a positive rating on SolarEdge, while nine have a neutral rating, and four analysts hold a negative rating on the company. The consensus price target for SolarEdge is $154.45.
Current Stock Performance
SEDG Price Action: Based on Benzinga Pro, SolarEdge Technologies shares were down 6.47% at $69.12 at the time of publication.
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