Bank of America released a research report that raised SolarEdge Technologies' rating from "underperform" to "neutral" with a target price of $29.
According to Futu Securities, Bank of America released a research report that raised the rating of solar technology manufacturer SolarEdge Technologies (SEDG.US) from "underperform" to "neutral", with a target price of $29. The reason is that the company's stock price reflects the "worst-case scenario that is unlikely to occur", including inventory write-downs and the inability to monetize its balance sheet.
Analyst Dimple Gosai said that although the current valuation level looks attractive, the stock is approaching a five-year low due to weak housing demand. He is looking for a more practical way to recover margins and cash flow before gradually becoming bullish on the stock.
The company continues to face serious inventory problems in the European market, coupled with weak demand in the US terminal market. Gosai believes that before seeing SolarEdge recover profitability in the first half of 2025, the risk of channel inventory congestion and weak sales will continue for a whole year.
Gosai said that the slowdown in inventory turnover has led to increased operating funds, and the complexity of managing cash flow is highlighted by credit extensions. However, $0.3 billion convertible bonds should help alleviate recent concerns about the balance sheet.